The cryptocurrency market is consolidating, according to FxPro analyst Alex Kuptsikevich, with high mood and active buying suggesting room for more expansion.
Late Monday saw Bitcoin return to the $100,000 threshold, its first such ascent in two weeks. This recovery came after President-elect Donald Trump’s 2024 victory was formally certified by Congress, paving the way for his inauguration on January 20.
In a ceremonial ceremony on Monday, Congress formally certified the election results for all 50 states and the District of Columbia. In her capacity as Senate president, Vice President Kamala Harris presided over the joint session of the House and Senate.
The asset had increased by 10% over the previous week and was trading close to $101,775 at 12:09 am ET on Tuesday. At the same time, the entire value of the cryptocurrency market topped $3.7 trillion, the biggest since December 19.
Analyst: Bitcoin Is Ready for Its Next Rally If It Hits $109K
According to Alex Kuptsikevich, chief market analyst at FxPro, the cryptocurrency market’s bouts of short-term rise are giving way to times of stabilization. He said that the present attitude index of 76, which indicates great greed, points to active purchasing and significant potential for additional growth. The market appears to be gently moving upwards, probing the ground beneath its feet.
According to the expert, present technical signs indicate that a normal correction is coming to a conclusion, and growth will resume in order to recover 61.8% of the early November rally. He continued by saying that if Bitcoin makes a clear break beyond its prior highs of almost $109,000, this prediction will be validated. Additionally, he anticipates that after Bitcoin crosses the $100,000 threshold, its growth will pick up speed.
Binance Draws Attention to Bitcoin’s Outstanding Performance as It Breaks the $100,000 Barrier
On December 5, Bitcoin initially hit the $100,000 mark, driven by mounting hope that, if elected, Trump will enact crypto-friendly deregulation. Trump pledged to make the US the “crypto capital of the world” throughout his campaign.
As of Tuesday, January 7, US spot Bitcoin ETFs had net inflows of $987.06 million, while US spot Ether ETFs saw $128.7 million, according to SoSoValue.
Regulators in China, meanwhile, have strengthened their position by incorporating cryptocurrency transactions within their forex regulations. These transactions have been identified as high-risk by the State Administration of Foreign Exchange (SAFE), which has directed financial institutions to keep a careful eye on any transactions involving cryptocurrency.
In a separate study released on Monday, Binance said that Bitcoin is among the best-performing global assets of the year, second only to Nvidia. According to the paper, major factors that contributed to Bitcoin’s remarkable run were changes in monetary policy, the impending Bitcoin halving, spot ETF approvals, and expectations for more benevolent crypto laws. Bitcoin may move up in the global asset rankings and solidify its position as a top asset class if this trend lasts until 2025.
