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Quick analysis of the situation
Well, well, well! Grab your digital wallets, folks, because Bitcoin has made a spectacular comeback, soaring past the elusive $100,000 mark yet again. After a brief hiatus – think of it as Bitcoin’s dramatic cliffhanger episode – and bolstered by Congress’s impending confirmation of Donald Trump’s electoral comeback, BTC has surged back into our lives like a late-night infomercial for a product we didn’t know we needed.
According to Bloomberg, Bitcoin climbed over 4% within just 24 hours and hit a dazzling $102,500 on Monday. Just like the plot twists in reality television, this is a remarkable 11% weekly increase—its most significant surge since November 24. Who would have guessed that all it would take was a touch of political drama to kickstart the crypto party again?
The Trump Effect: A Crypto Comeback Story
After the fever pitch excitement of 2024 whittled down to a more subdued fervor by late December, it seemed like investors were determined to cash in their chips. But just wait! Enter stage left: a pro-crypto administration that has rekindled the embers of enthusiasm, propelling Bitcoin to a breathtaking peak of $108,000. It’s like watching a game of poker, and you realize the stakes are much higher than you thought!
As Congress gears up to certify Trump’s win, optimism is thick in the air. Khushboo Khullar, a venture partner at Lightning Ventures, chimes in about a potential ‘super cycle’ in 2025 driven by sweeping regulatory changes. Not to be outdone, traders are also enjoying a notable influx of capital into Bitcoin exchange-traded funds (ETFs), with a whopping $908 million pouring in last Friday. Talk about a solid stock tip!
Signs of Life: A Rebounding Coinbase Premium
And guess what? The Bitcoin Coinbase Premium has sprung back to life as well. This is the nifty little metric that measures Bitcoin's price difference between Coinbase and Binance. After plumbing the depths following the FTX fallout, the premium is recovering faster than a celebrity on a reality show—indicating higher demand among US investors. Joe McCann, CEO of Asymmetric, reminds us that ETF issuers primarily transact with Coinbase, making the Bitcoin landscape all the more vibrant.
Treading Carefully: Support Levels Under Scrutiny
However, let’s not get too carried away in our crypto jubilation. Bloomberg's crystal ball suggests Bitcoin's future hinges heavily on Trump’s commitment to his crypto-centric promises, which include the rather ambitious idea of a national Bitcoin reserve. While we are all cheering for upward trends and digital gold (that’s Bitcoin, not your grandma’s jewelry!) an ominous cloud looms on the horizon. A recent survey by MLIV Pulse found that a staggering 39% of people are convinced that Bitcoin could morph into a ‘loser’ investment by 2025—this is more skepticism than you'd find at a family gathering discussing politics!
With some technical magic, market expert Morecryptoonl reveals that BTC has formed a more definitive five-wave pattern, but there’s still a potential bearish scenario lurking if specific support levels take a tumble. Waves one and two are the dramatic characters in this financial soap opera, where wave two needs to maintain a grip if the plot is to remain bullish.
Looking Ahead
As Inauguration Day approaches, Glassnode suggests that the buying spree isn’t about to wane anytime soon. Traditional finance investors seem poised for action, ready to jump into the Bitcoin pool, which could send ripples through the entire market.
So here we are, Bitcoin at $101,888 and still scratching the surface of significant gains over time. With politics weaving through our favorite cryptocurrency story like a soap opera plot twist, it's evident Bitcoin's had quite the rollercoaster ride lately, and the upcoming episodes promise even more excitement. Buckle up, keep your Bitcoin close, and let the drama unfold. Who knows what next week will bring—perhaps a surprise cameo?
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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Please, behave!