Bitcoin has once again surged, breaking past $96,000, and investors are eagerly watching to see if it will reach the coveted $100,000 mark as the Thanksgiving holiday approaches. The flagship cryptocurrency’s latest rally comes after a brief pullback earlier this week that saw its price dip from record highs.
As of Wednesday, Bitcoin was up nearly 6% at $96,676.70, according to Coin Metrics. Ethereum (ETH), the second-largest cryptocurrency by market cap, also experienced a significant jump, rising more than 9% to $3,636.46. The broader cryptocurrency market followed suit, with the CoinDesk 20 index reflecting a 7% gain.
Despite Bitcoin being widely regarded as a digital store of value akin to gold, it often mirrors the movements of the stock market. However, this time it decoupled from traditional indices such as the tech-heavy Nasdaq Composite, which was down 0.6%, and the Dow Jones Industrial Average and S&P 500, which also experienced declines.
Cryptocurrency stocks benefited from Bitcoin’s resurgence. Coinbase, a major cryptocurrency exchange, saw its shares rise more than 6%. Robinhood, known for its crypto trading platform, gained 3%, while MicroStrategy, often seen as a proxy for Bitcoin due to its substantial Bitcoin holdings, advanced 9%.
Since the U.S. presidential election on November 5, Bitcoin has been on a remarkable upward trajectory, increasing by approximately 38%. Last Friday, it came tantalizingly close to $100,000, peaking at $99,849.99 before retreating to test the $90,000 support level earlier this week.
Alex Thorn, head of firmwide research at Galaxy Digital, expressed optimism about Bitcoin’s future in a report published Wednesday. “The Bitcoin bull market has legs,” he stated. “There will be corrections and hiccups, which is normal. There could even be some twilight regulatory or law enforcement actions from the outgoing Biden administration that jitter markets. But a combination of increasing institutional, corporate, and potentially nation-state adoption, a new U.S. administration that is shaping up to be extremely pro-Bitcoin, and solid positioning and network data all point to higher prices over the near and medium term.”
Katie Stockton of Fairlead Strategies echoed Thorn’s sentiments during an appearance on CNBC’s “Squawk Box.” She highlighted the uncharted territory Bitcoin currently inhabits, noting the absence of clear resistance levels and identifying $74,000 as a key support level. Stockton observed that Bitcoin tends to move in sharp runups followed by periods of consolidation, advising investors to be prepared for volatility and to recognize the cryptocurrency’s long-term potential.
Bitcoin’s impressive performance in 2024 has it up 126% for the year, reinforcing expectations that it could hit $100,000 before the year concludes. Ethereum, while trailing Bitcoin on a year-to-date basis with a 59% gain, has been an outperformer since the election.
As we approach the holiday season, Bitcoin’s journey toward the $100,000 milestone will be closely watched by investors and analysts alike, with many optimistic that the cryptocurrency’s upward momentum will continue into the new year.
