As Bitcoin approaches the $100,000 milestone, selling pressure is gradually building, and market sentiment is becoming extreme. According to several analysts, after Bitcoin's attempt to hit $100,000, its growth has faced obstacles, prompting traders to deeply assess whether the optimism brought by President-elect Trump's support for cryptocurrencies is excessive.
Last Friday, Bitcoin was just $300 away from the six-figure milestone, but it briefly dipped to around $95,000 last Sunday. By Monday before the U.S. market opened, global market sentiment was boosted by Trump appointing hedge fund executive Scott Basset as Treasury Secretary, causing Bitcoin to rebound above $98,000.
Matt Maley, chief market strategist at Miller Tabak + Co, stated that investors are concerned that Bitcoin "needs a breather after testing the $100,000 level," and that the optimism surrounding Bitcoin is "heading towards extremes." With the Trump administration about to take office, it is viewed as a significant positive for cryptocurrencies by Wall Street and others. Since Trump's election on November 5, the total market value of digital assets has surged by about $1 trillion. Trump has promised to adopt friendly regulatory measures and establish a national Bitcoin reserve, although there are no conclusions regarding the related implementation plans and feasibility.
David Lawant, head of research at cryptocurrency market maker FalconX, said: "As the $100,000 mark approaches, seller sentiment is strengthening, indicating that short-term consolidation may occur near this level, making it difficult to break through quickly." Traders are pushing Bitcoin to the edge of $100,000 based on the outlook for U.S. cryptocurrencies, and this symbolic price level strongly counters skeptics doubting the intrinsic value of digital assets.
Cantor Fitzgerald is in talks with stablecoin issuer Tether to seek support for its Bitcoin collateral loan project for clients. Cantor Fitzgerald CEO Lutnick, who is also a co-chair of Trump's transition team and nominee for Secretary of Commerce, is exploring the establishment of the first dedicated White House digital asset policy position. Since Trump's election victory, significant funds have flowed into the U.S. Bitcoin spot ETF, with its asset size reaching $107 billion.
Stephane Ouellette, CEO of cryptocurrency investment firm FRNT Financial Inc., believes: "Bitcoin was significantly overbought after the election, and a stagnation in growth is inevitable. Last weekend's market was not a substantial correction, merely a return to mid-week levels." The subsequent trend of Bitcoin is full of uncertainties, with the interplay of market sentiment and fund flow continuing to dominate its price direction.
