Bitcoin broke above $99,000 for the first time Thursday as investors continued to price in the likelihood of a second Trump term.
The leading cryptocurrency was last trading at 98,273.50, up more than 4%, according to Coin Metrics. It reached an intraday high of $99,046.94 earlier in the day.
Amid a broader shift away from technology stocks, investors took profits in cryptocurrency equities. Coinbase experienced a decline of 7.7%, while MicroStrategy fell by 16.2%. Mining stocks faced downward pressure, with the exception of Mara Holdings, which saw an increase of approximately 6.9%.
This month, Bitcoin has repeatedly reached new highs on the back of optimism that a Trump presidency would unleash a benign backdrop for cryptocurrency including, more lenient regulations, along with the creation of a national strategic bitcoin reserve.
The latest move came amid an increase in funding rates and open interest in the futures market during Asian trading hours. At the same time, premiums in spot markets declined, according to CryptoQuant.
Also, Bitcoin’s recent run-ups spurred over $100 million of short liquidation in a 24 hour period, according to CoinGlass, and helped push the price further overnight.
Rob Ginsberg, an analyst at Wolfe Research, pointed out in a report Wednesday, “Historically, BTC has either entered a consolidation phase or disregarded overbought conditions as investors rush in during previous movements of this scale.”
He further added, “Since we are just coming out of a multiweek consolidation phase and price has already reached a new high, this would indicate that the chase is heating up. The real test, however, will be around the major psychological level of $100,000, which might be challenged in the next couple of weeks, as early as this Thursday.”
A second Trump term could also mean wider budget deficits, higher inflation, and changes in the US dollar’s international status all drivers that might have a positive impact on the price of Bitcoin.
Bitcoin is up around 130% in 2024.
