According to The Block, Bitcoin prices soared to a new all-time high of $106,352 on Sunday. Analysts believe Bitcoin prices may continue to rise towards the end of the year and into 2025.
Bitcoin slightly retreated after setting a new high of $106,352 on Sunday. Currently, the trading price of the world's largest cryptocurrency is $104,700, having risen by 2.72% in the past 24 hours, but it has slightly declined from its all-time high.
Analysts told The Block that this leading cryptocurrency may continue to rise, thus maintaining positive momentum into the new year.
"The new all-time high is very important for Bitcoin, marking its evolution as a more mature asset class," said Rachael Lucas, a crypto analyst at BTC Markets. "The historical high reflects Bitcoin's transition from a retail-driven asset to one supported by institutional demand, ETFs, and corporate finance, thereby enhancing its legitimacy."
Analysts stated that several factors contributed to Bitcoin's price breaking above $106,000, including the recently expressed desire of President-elect Donald Trump to establish a strategic cryptocurrency reserve and do 'great things' in the crypto space.
Additionally, MicroStrategy announced that its Bitcoin reserves have now exceeded $44 billion and will enter the Nasdaq 100 on December 23, further boosting market sentiment. MicroStrategy co-founder Michael Saylor also posted a series of messages on social media platform X, increasing expectations for further Bitcoin purchases.
Last Friday, Bitcoin mining giant Riot Platforms announced that it had acquired 5,117 Bitcoins at an average price of approximately $99,669.
Investors are currently focused on the last Federal Reserve meeting of the year, scheduled for Wednesday. The CME Group's FedWatch tool currently shows a 97.1% probability that the upcoming FOMC meeting will decide to cut the national interest rate by 25 basis points.
"The upcoming FOMC meeting will provide important insights into the Federal Reserve's outlook for potential rate cuts," said Presto Research analyst Min Jung. Jung added that any announcements or developments related to Trump's inauguration in January are expected to significantly impact cryptocurrency prices.
