Traders See Even More Bitcoin Buying Pressure as BTC Sets New Record at $103K

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What to know:

  • BTC added 7.2% in the past 24 hours, data shows, zooming to a $2 trillion market capitalization for the first time as it set a record just over $103,670.
  • Spot BTC ETFs in the U.S. notched up $533 million in net inflows on Wednesday, data shows, with BlackRock’s IBIT crossing $50 billion in net assets for the first time.
  • A seasonally bullish holiday period, demand from ETFs and higher mainstream media attention could fuel more buying demand for BTC in the coming weeks, traders say.

As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The current Bitcoin rally, breaking the $100,000 barrier after 15 years, is indeed an extraordinary event that warrants my attention.

As an analyst, I witnessed a significant milestone today as Bitcoin surpassed the $100,000 mark for the first time, approximately 15 years since its initial launch. This breakthrough has left many traders optimistic about its potential continued growth.

In the last 24 hours, Bitcoin increased by approximately 7.2%. This surge brought its market capitalization to a record-breaking $2 trillion for the first time, with its value peaking at around $103,670. However, during the Asian trading session in the afternoon, it began to lose some ground and dropped to roughly $102,500 as traders cashed in their early profits.

Over the last month, this asset has experienced a 50% growth primarily due to heightened institutional interest, surging Exchange Traded Fund (ETF) investments, positive feedback from traditional finance communities, and optimism surrounding Donald Trump’s upcoming presidency in the U.S., which is expected to boost Bitcoin activities within the country.

Yesterday saw a total of $533 million pour into Bitcoin-related ETFs based in the United States, as per data available. Notably, BlackRock’s IBIT fund surpassed the $50 billion mark in total assets under management for the very first time.

The swift increase in prices has triggered concerns among some analysts that a peak may have been reached locally, potentially leading to a drop as low as $90,000. However, an optimistic outlook during the holiday season, increased demand from ETFs, and heightened mainstream interest might stimulate further Bitcoin purchases in the near future, according to traders.

Here’s what three traders are saying about the current rally, and future moves.

Following a favorable remark by Powell likening Bitcoin to digital gold and the appointment of Paul Atkins as SEC chairman, Bitcoin (BTC) has now exceeded 100,000 for the first time.

According to our assessment, there’s still potential for Bitcoin to surge beyond 100k, as there seems to be untapped demand. This surge could draw in more public interest. Furthermore, it’s worth noting that Bitcoin is currently relatively small compared to other major assets. As its market cap expands, it’s likely to attract large institutional investors who can now commit substantial resources. (Min Jung, Presto Research investment analyst)

Jeff Mei, COO of BTSE, explains that Bitcoin breaking the $100,000 barrier isn’t just an achievement; it symbolizes a crucial juncture in the world of cryptocurrencies. This optimism stems from a progressively advantageous regulatory landscape in the U.S., notably with Paul Atkins assuming the role of SEC chair. This development may stimulate increased institutional investment in this field, enhancing Bitcoin’s reputation and potentially triggering another round of widespread adoption.

“Although some speculators believe reaching $100k signals a market top, on-chain demand and macroeconomic indicators suggest Bitcoin still has a lot of momentum to push higher. This is further evident in the leading bearish narratives invalidated, such as the US presidential election and the regulator’s stance towards crypto.”

As long-term investors might be reducing their investments, it’s the mainstream media and regular market participants who are just now becoming aware of Bitcoin’s astonishingly rapid increase at this significant point. This newfound awareness could potentially lead to additional buying activity due to the fear of missing out on further gains.” – Paraphrased by AI assistant

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2024-12-05 08:42