Bitcoin broke above its $100,000 price tag for the first time this year, as a significant tailwind continues to boost trader sentiment after last year’s historic run.
At the time of writing, the Bitcoin price has reached a high of $101,192, according to CoinGecko, before declining slightly. It is still far from its all-time high of $108,135.
Sunday’s move follows a nearly three-week period in which the world’s largest digital assets traded below the psychological mark after falling 5.6% in a single day on December 18.
While crypto and broader stocks shuddered when the Federal Reserve announced its revised dot plot outlook for future rate cuts in late December, the mood remains bullish, with some of last year’s most popular digital assets looking set to recover.
Still, crypto’s trading environment remains “mixed” following the December FOMC meeting and subsequent holiday season, according to digital asset investing research firm 10x Research.
“Instead of a continued rally, BitcoinIt appears to be navigating within a tactical trading area, which presents opportunities for strategic positioning rather than a clear bullish trend,” the company wrote in a note to investors on Sunday.
President-elect Donald Trump’s plan to establish a strategic Bitcoin reserve in the US after his inauguration on January 20 continues to weigh on investors’ minds.
The proposal would see the U.S. government retain its current bitcoin holdings — about 210,000 bitcoins worth about $21 billion, obtained primarily through criminal seizures — and potentially acquire even more bitcoins.
It joins the Bitcoin Act of 2024, proposed by Senator Cynthia Lummis, which calls on the US Treasury Department and the Fed to acquire 1 million bitcoins in five years, about 5% of the global supply.
Whether Trump can keep his promise once he regains the White House this month remains to be seen. Still experts Declutter spoke earlier to say that the very prospect put forward by a future president will continue to strengthen the outlook for the first half of the year.
Edited by Stacy Elliott.
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