Bitcoin stabilized after a surge toward $100,000 slowed down just below that historic mark, as traders reconsider whether the excitement from President-elect Donald Trump’s crypto support might be overdone. The cryptocurrency dropped to $95,776 on Sunday after nearly reaching the $100,000 milestone on Friday. It bounced back to $98,310 by 6:45 a.m. Monday in London, as Trump’s choice of investment fund executive Scott Bessent for Treasury secretary boosted sentiment in global markets.
Some investors are concerned that Bitcoin may need a break after testing the $100,000 level, with Matt Maley, chief market strategist at Miller Tabak + Co, noting that the enthusiasm around Bitcoin is getting “extreme.”
Trump’s administration is expected to be crypto-friendly, which has helped push the value of the digital-asset market up by about $1 trillion since his election win on November 5.
Trump has promised to introduce friendlier regulations for crypto and create a national Bitcoin stockpile, though it’s unclear when these plans will take shape and whether they are practical.
David Lawant, head of research at crypto broker FalconX, noted that there’s growing pressure to sell as Bitcoin approaches $100,000, suggesting that the price may consolidate around this level for a while before breaking through.
Investors have been driven by the positive outlook for US crypto regulations, pushing Bitcoin to the brink of $100,000, a key level that many supporters see as a win for digital assets against skeptics.
In other news, Cantor Fitzgerald (global financial services firm) is reportedly in talks with Tether Holdings Ltd. (stablecoin issuer) to receive support for its planned Bitcoin-backed lending program. Cantor’s CEO Howard Lutnick, who is also co-chair of Trump’s transition team, is involved in discussions about creating a White House position dedicated to digital asset policy.
Since Trump’s victory, there’s been a surge of investment into US Bitcoin-focused exchange-traded funds, which have now grown to $107 billion in assets.
Despite the pullback, Stephane Ouellette, CEO of crypto firm FRNT Financial, says that while Bitcoin was overbought after the election, this dip is just a minor correction, bringing it back to where it was earlier in the week.
