Bitcoin resumes growth: optimism about $100,000 revives
28 November 2024 09:07
The world’s largest cryptocurrency, bitcoin, is once again beginning to approach the $100,000 milestone. After a long period of decline, the longest since Donald Trump won the presidential election, bitcoin has returned to steady growth, reports "Komersant Ukrainian" reports with reference to Bloomberg.
In recent days, the cryptocurrency has risen by about 40%, due to traders’ expectations for a more favorable regulatory climate for digital assets under the leadership of the president, who has expressed support for the industry. On Friday, bitcoin hit a record high of $99,728, but over the next four days, it underwent a correction. On Wednesday, the token’s value increased by 6%, reaching $97,361. Overall, the cryptocurrency has more than doubled in value this year.
Reasons for fluctuations and market expectations
Experts point out that the recent price drop was caused by active selling by investors who decided to take profits. Jake Ostrowskis, an OTC trader at Wintermute, believes that this situation is typical for the market after a sharp rise.
“The market is now in the process of finding a new price. The correction over the past few days looks like a healthy pullback after rising by more than 45% from the pre-election lows. It was probably caused by profit-taking,”
– Ostrovskis explained.
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Mykola Karpenko, director of B2C2 , shares a similar opinion. He noted that the previous drop was tactical and related to the approach to the psychological level of $100,000.
“When we almost reached a six-figure amount, it probably prompted some market participants to take profits, including institutional investors who bought before the election,” he said,
– Mr. Karpenko said.
Influence of macroeconomic factors
At the beginning of this week, markets experienced increased volatility due to Trump’s statements about the possible introduction of additional tariffs on imports from China, Mexico and Canada. This could temporarily increase pressure on cryptocurrencies.
However, the outlook for bitcoin remains positive. Alex Thorne, head of research at Galaxy Digital, predicts that after short-term sales are over, bitcoin may find strong support and try to break the $100,000 barrier again.
“After the market clears of excessive leverage and short-term investors finish taking profits, we expect bitcoin to find a strong support base and make another attempt to break the $100,000 level in the near term,”
– Thorne wrote in a note to clients.
Despite temporary fluctuations, the market remains confident in bitcoin’s potential to reach a new all-time high in the near future.
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