Friday, December 27, 2024

Bitcoin Treading Water Below $100,000 With Big Target In Sight

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(Bloomberg) — Bitcoin has spent the weekend so far trading well shy of the landmark $100,000 level, once again dashing enthusiasts’ hopes that the oldest of digital assets would breach that significant financial — and psychological — threshold.

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Cryptocurrencies ranging from Bitcoin to memecoins have been on a tear since the election of Donald Trump to a second term in the White House. Investors are betting on friendlier regulations in the US and an expansion of mainstream interest and awareness driven by the president-elect’s own avowed support for crypto. The crypto market as a whole has gained about $1 trillion since Trump’s election win.

But the momentum hasn’t quite been enough for the largest crypto token to set a major new milestone. While Bitcoin came within $300 of the $100,000 mark on Friday afternoon, it seemed unable to push past $99,000 on Saturday.

Inflection Point

Trump’s transition team has begun to hold discussions over whether to create a new White House post dedicated to digital-asset policy, Bloomberg reported earlier. Crypto is seeking a direct line to the president-elect, who has shaken off his earlier skepticism of digital assets and is now seen as an industry cheerleader.

This perceived inflection point in the official US attitude to crypto is filtering across Wall Street. Charles Schwab Corp.’s incoming Chief Executive Officer Rick Wurster said Thursday the firm will get into offering spot crypto trading once regulatory changes materialize.

Bitcoin accumulator MicroStrategy Inc.’s plans to accelerate purchases of the token, and the debut of options on US Bitcoin exchange-traded funds, also lifted sentiment this week.

“We can focus on news that SEC Chair Gary Gensler will step down on Jan. 20, sizable inflows into the ETFs, and the role that options play in driving prices higher, but this is an out-and-out momentum rally, and $100,000 is acting as a magnet,” Chris Weston, head of research at Pepperstone Group, wrote in a note.

Advocates of Bitcoin’s claimed role as a modern-day store of value cherish the $100,000 level as a symbolic rebuttal of skeptics who see little utility in crypto and decry its links to crime. While the token has more than doubled in price this year, many experts still question its fitness for investment portfolios.

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