Despite a brief correction to the $91,000 mark on Tuesday, down 7% from the all-time high of $99,500, the leading cryptocurrency, Bitcoin (BTC), has regained the strength it had built over the past three weeks since Donald Trump's election, on its way to the $100,000 milestone.
Coinbase, Robinhood, and MicroStrategy have all achieved gains
In the 24-hour time frame, Bitcoin recorded a nearly 5% increase, reaching back to $96,100 as the key to achieving a new all-time high in the final days of the month.
This bullish price movement has been anticipated by experts and analysts throughout the year as a typical bullish behavior in Halving cycles, further fueled by Trump's cryptocurrency agenda, which includes making BTC a strategic reserve for the US.
This week marks a notable divergence as Bitcoin separates from the tech-heavy Nasdaq Composite, down 1%. According to CNBC data, the Dow Jones Industrial Average and S&P 500 also declined, but Bitcoin has maintained its upward trajectory.
This strength is reflected in the performance of cryptocurrency-related stocks, with the US-based cryptocurrency exchange Coinbase (COIN) rising over 5%, Robinhood (HOOD) increasing by 4%, and MicroStrategy (MSTR) surging by 10%.
Bitcoin enters 'Uncharted Territory'
In addition to the bullish outlook provided by the data and metrics recorded over the past three weeks regarding cryptocurrency prices, market analysts are also optimistic about Bitcoin's future, with Alex Thorn, head of research at Galaxy Digital, stating that "the Bitcoin bull market is showing signs of revival."
Thorn acknowledges the ability to adjust and "regulatory disorder" stemming from the soon-to-expire Biden administration but believes that the increasing adoption from organizations, businesses, and potentially nations will push Bitcoin prices higher in the short to medium term.
Katie Stockton of Fairlead Strategies also emphasized that Bitcoin investors are now in "uncharted territory" concerning resistance levels, meaning there are very few historical price points indicating the potential for a pullback. Support is identified around $74,000, suggesting a solid foundation for future growth. Stockton further stated:
Bitcoin tends to gradually increase in both downward and upward directions, meaning it sees very strong price surges followed by consolidation. People should… be ready for more space for Bitcoin and cryptocurrencies in general due to the volatility present and also because of long-term potential.
With a growth rate of 124% to date, Bitcoin is still on track to surpass the $100,000 threshold before the year ends. In comparison, Ethereum (ETH), the second-largest cryptocurrency, has also performed well since the election but still lags behind BTC with a growth of 55% to date.