Bitcoin's rally towards $100,000 has stalled, and traders are assessing whether the optimism brought by President-elect Trump's support for cryptocurrencies is becoming overstretched.
After being just $300 away from the six-figure milestone last Friday, Bitcoin briefly fell to around $95,000 on Sunday. As of Monday morning in the U.S., Bitcoin rebounded to above $98,000 due to the boost in global market sentiment from Trump's choice of hedge fund executive Scott Basset as Treasury Secretary.
Matt Maley, Chief Market Strategist at Miller Tabak + Co, expressed that investors are concerned that Bitcoin "will have to take a breather after essentially testing the $100,000 level," adding that the optimism surrounding Bitcoin "is becoming extreme."
The incoming Trump administration is seen by Wall Street and other regions as a positive factor for cryptocurrencies. Since this Republican candidate's victory on November 5, the total value of the digital asset market has soared by about $1 trillion.
Trump has promised to take friendlier regulatory measures and has committed to establishing a national Bitcoin reserve, although the timeline for implementation and the feasibility of the Bitcoin reserve remain unresolved issues.
David Lawant, Head of Research at cryptocurrency market maker FalconX, said, "As we approach the $100,000 mark, I see increasingly strong selling sentiment. This indicates that we may consolidate around this level in the short term before a sustained breakthrough occurs."
Traders are leveraging the outlook for U.S. cryptocurrencies to push Bitcoin to the brink of $100,000, a symbolic level that serves as a rebuttal to skeptics who believe digital assets have little intrinsic value.
It is reported that Cantor Fitzgerald is in talks with Tether to secure support from this stablecoin issuer for its planned loan project, which provides loans to clients using Bitcoin as collateral.
Cantor Fitzgerald CEO Lutnick is a co-chair of Trump's transition team and also the nominee for Secretary of Commerce in Trump's new administration. The transition team has also discussed the establishment of a dedicated White House position responsible for digital asset policy.
Since Trump's election victory, a significant amount of capital has flowed into U.S. spot ETFs that invest directly in Bitcoin, with the assets of these products now reaching $107 billion.
Stephane Ouellette, CEO of cryptocurrency investment firm FRNT Financial Inc., said, "Since the election, Bitcoin has been severely overbought, and its momentum is bound to stall. In other words, last weekend's market movement can hardly be considered a correction; we are just back to mid-week levels from last week."
Article reposted from: Jin Shi Data
