Bitcoin has surged to near $100,000 again, breaking its longest losing streak since Donald Trump's presidential victory sent the price of the largest cryptocurrency soaring to record highs.
The cryptocurrency has surged about 40% since the election on November 5, as traders anticipate a more friendly regulatory environment for cryptocurrencies, under a president who has said he supports the industry.
Bitcoin hit an all-time high of $98,943 on Friday before beginning a four-day losing streak. The coin surged as much as 5% on Wednesday to $96,616. The rally comes as the cryptocurrency has more than doubled in value this year.
Health decline
The market is in a price discovery phase, and the drop over the past two days looks like a healthy pullback after a move more than 45% above the pre-election low, said Jake Ostrowskis, an OTC trader at Wintermute.
“This is likely to be driven by profit taking,” he added. “Traders are looking at the $100,000 level as achievable.”
For his part, Nikolai Karpenko, director at B2C2, considered that some of the previous decline during the week was due to profit-taking as the price approached a historical threshold. He said that the decline was tactical, and that Bitcoin is likely to cross the $100,000 threshold soon.
“Since we are close to the six-digit threshold, we believe that Bitcoin reaching this rate could lead to profit-taking among institutions and individuals who bought before the election,” Karpenko said.
There was also some volatility in the markets earlier this week, after Trump announced potential additional tariffs on China, Mexico and Canada.
“Once some leverage is removed and short-term buyers finish taking profits, we believe the coin could find a strong support base and could try again to break the $100k level (sell wall!) in the near term,” Alex Thorne, head of research at Galaxy Digital, wrote in a note to clients.
