Bitcoin’s surge toward $100,000 faltered as the digital asset pulled back just shy of the historic milestone, with traders evaluating whether optimism surrounding President-elect Donald Trump’s stance on cryptocurrency has reached unsustainable levels.
The cryptocurrency dropped to as low as $95,776 on Sunday, after coming within $300 of hitting the six-figure threshold on Friday. However, it rebounded to $97,550 by 10:37 a.m. Monday (Singapore time). This recovery coincided with a positive shift in market sentiment following Trump’s selection of hedge fund executive Scott Bessent for Treasury Secretary, which bolstered broader investor confidence.
Despite the rebound, concerns linger that Bitcoin may face a period of consolidation. Matt Maley, Chief Market Strategist at Miller Tabak + Co, noted that “Bitcoin may need to pause now that it has tested the $100,000 level,” adding that the enthusiasm surrounding the cryptocurrency is growing “extreme.”
The incoming Trump administration has sparked optimism within the cryptocurrency market, with many investors viewing his policies as favorable for digital assets. Since Trump’s victory on November 5, the total market value of digital assets has surged by approximately $1 trillion.
Trump’s pro-crypto stance includes promises of more favorable regulations and the creation of a national Bitcoin stockpile. However, the details of these plans, including the timeline and feasibility of a Bitcoin reserve, remain uncertain.
David Lawant, Head of Research at FalconX, highlighted growing sell-side pressure as Bitcoin approaches $100,000. “We are likely to see some consolidation around this level before we can break through it sustainably,” he explained.
The $100,000 price point holds symbolic significance for the cryptocurrency community, representing a key milestone that could challenge skeptics who question the intrinsic value of digital assets.
In recent developments, Cantor Fitzgerald LP has reportedly been in discussions with Tether Holdings Ltd. regarding potential support for a new Bitcoin-backed lending program. This move comes as the investment bank, led by CEO Howard Lutnick—who also serves as co-chair of Trump’s transition team—seeks to further capitalize on the crypto market. The transition team has also been exploring the possibility of creating a White House position focused specifically on digital asset policy.
In the wake of Trump’s election, significant inflows have poured into US-based exchange-traded funds (ETFs) that invest directly in Bitcoin. These funds have now accumulated a combined total of $107 billion in assets.
While the recent price pullback may seem significant, many analysts, such as Stephane Ouellette, CEO of crypto investment firm FRNT Financial, consider it a minor correction. “Bitcoin was overheated post-election, so a stall was inevitable,” Ouellette said. “However, this is hardly a dramatic pullback; it’s simply a return to levels seen earlier in the week.”
As Bitcoin stabilizes and tests new levels, all eyes will remain on the political landscape and the unfolding regulatory environment under the Trump administration, which continues to shape the trajectory of the digital asset market.
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