Bitcoin Stalls Below $100,000 Mark
Bitcoin approached the $100,000 level last week but was unable to surpass it, experiencing a decline over the weekend. On Friday, Bitcoin paused just $300 shy of the $100,000 mark and started the new week around $98,000 after dropping to the $95,700 range on Sunday. During this period, a generally positive sentiment emerged in global markets due to the influence of Scott Bessent, a hedge fund manager intended to be appointed by Trump as Treasury Secretary.
Market commentators suggest that Bitcoin may have entered a consolidation phase after testing the $100,000 mark. The upcoming U.S. government under Trump is expected to adopt a crypto-friendly approach, positively impacting Wall Street and beyond. Since Trump’s victory, the total value of the cryptocurrency market has increased by approximately $1 trillion. Trump's crypto policies and market reactions indicate that he has pledged to make regulations more flexible while maintaining a friendly stance toward cryptocurrencies. He also promised to establish a national Bitcoin stock reserve, but the feasibility and timeline of this project remain uncertain.
David Lawant, head of research at FalconX, predicted that there are accumulated sell orders near the $100,000 level, suggesting that consolidation might occur at this point. For cryptocurrency investors, the $100,000 level represents a milestone contrary to critics who do not believe in the true value of crypto assets.
More recently, according to Bloomberg, Cantor Fitzgerald is continuing discussions for a Bitcoin-collateralized loan program with Tether Holdings. Cantor Fitzgerald's CEO, Howard Lutnick, is among the candidates for Trump's Secretary of Commerce position, and Trump's transition team has discussed creating a White House position regarding crypto asset policies.
Following Bitcoin's inability to reach the $100,000 price point, it has caused over $500 million in liquidations. In the past 24 hours, 196,851 investors faced liquidation, with $380.42 million liquidated from long positions and $125.58 million from short positions. Bitcoin was the most affected with $77 million in liquidations, while Ethereum saw $41 million, Dogecoin $34.6 million, and XRP $30.41 million in liquidations.
Analysts emphasize that the dynamics in the crypto market are diversifying and decoupling. Nevertheless, many analysts maintain their forecast that Bitcoin could exceed $100,000 by the end of the year. QCP Capital anticipates that strong Bitcoin demand and the loosening of monetary policy worldwide will keep prices high through the end of the year.
Post-Trump victory, interest in crypto assets is increasing, while the departure of SEC Chairman Gary Gensler is anticipated. Gensler is a controversial figure within the crypto community, and Trump had promised to remove him during his campaign. There is an expectation that a person closer to the crypto asset industry will be appointed as the head of the SEC in the new term. This situation has fueled speculation that a more lenient regulatory approach could be adopted in the cryptocurrency market.