On Wednesday (November 27), the price of Bitcoin climbed back above $96,000 per coin, partially recovering from earlier in the week when it fell below the historical high.
According to Coin Metrics, the price of this flagship cryptocurrency has risen about 5%, reaching $96,886.00 per coin.
Meanwhile, the price of Ethereum has also risen over 7%, reaching $3,555.82 per coin. The overall cryptocurrency market performance, measured by the CoinDesk 20 index, has also increased by 5%.
Although Bitcoin is often seen as a 'digital gold' and a store of value, its trading performance often synchronizes with the stock market.
However, on Wednesday, Bitcoin decoupled from the tech-stock-dominated Nasdaq composite index, which fell by 1%. Additionally, the Dow Jones Industrial Average and the S&P 500 index also showed a downward trend.
Driven by the rise in the cryptocurrency market, cryptocurrency-related stocks have also performed strongly. Coinbase's stock price rose over 4%, and Robinhood's stock price increased by more than 4%, as the latter is seen as potentially benefiting from the upcoming Trump administration's more cryptocurrency-friendly policy environment.
Meanwhile, the stock price of MicroStrategy, a major holder of Bitcoin, has also climbed by 11%.
Since the U.S. elections on November 5, the price of Bitcoin has continuously reached new highs, having cumulatively risen about 38% during this period. Last Friday, the price of Bitcoin almost approached $100,000 per coin, reaching $99,849.99 per coin, while this week it tested the support level of $90,000 per coin.
Institutional investment drives the Bitcoin market upward.
Alex Thorn, the head of research at Galaxy Digital, noted in a report on Wednesday, 'The Bitcoin bull market remains strong.' He added that despite potential market adjustments and volatility, the adoption rate of Bitcoin by institutions, corporations, and some countries continues to rise, coupled with the new U.S. government's supportive stance on Bitcoin, indicating that Bitcoin still has significant upside potential in the near and medium term.
Katie Stockton, founder of Fairlead Strategies, stated that Bitcoin is currently in 'uncharted territory', with almost no technical resistance levels, while the key support level is around $74,000 per coin. She added, 'Bitcoin's price movement typically exhibits stair-step rises and falls, meaning it will experience very rapid increases followed by a consolidation period. Investors need to give Bitcoin more room, as it has higher volatility but also long-term potential.'
The market expects Bitcoin to break $100,000 before the end of the year.
As of this year, the price of Bitcoin has cumulatively increased by 124%, and the market generally expects Bitcoin to break the $100,000 per coin mark by the end of the year. In contrast, Ethereum’s increase this year is 55%, although it lags behind Bitcoin, it still shows strong performance.
Investors are setting their sights on the Thanksgiving holiday, hoping Bitcoin can reach a new milestone.