After a Short-Term Pullback, Is Bitcoin Ready for $100,000 Now?
1min read Bitcoin has resumed its climb toward the highly anticipated $100,000 mark, buoyed by the near end of the deleveraging pullback and signs that crypto-friendly candidates will likely shape U.S. financial regulations under President-elect Donald Trump.
The largest cryptocurrency experienced a volatile week, with prices currently hovering around $95,947.63, dipping as low as $90,000 earlier but quickly rebounding on renewed optimism. The token has more than doubled in value this year, outperforming global stocks and gold.
The enthusiasm still exists. President-elect Donald Trump has pledged to reverse the crackdown on digital assets imposed by the Biden administration and instead foster industry growth, including the establishment of a national Bitcoin reserve. This promise has sparked a wave of optimism, pushing Bitcoin to within a whisker of the $100,000 milestone last week before traders adopted a more cautious stance, awaiting concrete policy steps.
Crypto supporter Paul Atkins has emerged as a leading candidate to replace Gary Gensler as SEC chair. Gensler, known for his stringent enforcement actions against the crypto sector, is stepping down, and his replacement is expected to be more favorable toward digital assets. Additionally, potential contenders to head the CFTC are also likely to be crypto-friendly, further supporting the market's growth.
The SEC, under Gensler, reluctantly permitted the launch of US spot-Bitcoin ETFs in January following a court reversal in 2023, and later approved ETFs for Ether. With Gensler's departure, Trump is expected to appoint a digital asset supporter as the new SEC head, potentially paving the way for ETFs for other tokens.
It is noted that US Bitcoin exchange-traded funds (ETFs) are on the verge of a record monthly net inflow, bolstered by Bitcoin's historic surge. ETFs from issuers like BlackRock Inc. and Fidelity Investments have attracted $6.2 billion in November alone, surpassing the previous peak of $6 billion in February. This influx is driven by Trump's pro-crypto stance and the anticipated regulatory ease under his administration.
Analysts remain optimistic about Bitcoin's future. Josh Gilbert from eToro predicts continued inflows into ETFs, especially under a Trump administration, which is expected to make it easier for businesses and retirement funds to own Bitcoin.
Brett Reeves of BitGo highlights that new institutional money is entering the space, and retail activity is increasing through ETFs and exchanges. "Historically, when new all-time highs are reached, there is typically a period of consolidation before further moves up," Brett Reeves told CNBC. "We know that new institutional money is coming into the space and retail activity is picking up, both via ETFs and exchanges. With positive macro and regulatory news ahead, we could see a quick pick-up in price activity."