The Struggle for $100k Continues
A long series of favorable circumstances—political, economic, and financial—has driven Bitcoin steadily upward throughout 2024, reaching the historic milestone of $100,000. This extraordinary achievement now sees the leading cryptocurrency seeking new certainties without breaking away from its bullish trend.
The bullish factors haven’t suddenly disappeared, but from a macroeconomic perspective, the Federal Reserve has somewhat dampened enthusiasm. As previously reported, the Federal Open Market Committee (FOMC) has continued its policy of gradual interest rate cuts, introducing another 25 basis point reduction.
However, Fed Chair Jerome Powell has expressed opposition to establishing a "state reserve" of Bitcoin, going against the stance of the new Republican administration.
This has contributed to a sudden increase in Bitcoin’s volatility, with a sharp correction below $100k, which was only recently recovered.
Markets Await Trump
Compared to Bitcoin, the correction in U.S. stock indices is more pronounced, with the Dow Jones, Nasdaq Composite, and S&P 500 all closing the last trading day down around 3%. These figures make it evident that macroeconomic factors have a smaller impact on Bitcoin's bullish trend than on the stock market. The Fed's forecast of smaller rate cuts in 2025 has alarmed traditional markets.
For Bitcoin's rally, however, the excitement following Trump’s election seems to hold more weight. His victory has already prompted several U.S. states to move toward new reforms favoring the adoption of Bitcoin.
What happens when Trump takes office in the White House remains to be seen. Many analysts view January 20, 2025, as a pivotal moment, with the new president needing to reassure crypto investors with concrete actions. Should expectations fall short, a sharp reversal of Bitcoin's bullish trend cannot be ruled out.
By Gue 22 🚀🌐
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