Bitcoin Continues to Break Records, New ATH Arrives! Here Are the Factors That Triggered the Rise
Bitcoin has broken a new all-time high, marking a significant rise for the cryptocurrency.
Bitcoin broke new records on Monday night, rising to an all-time high of $106,648.
Bitcoin Reaches All-Time High
Bitcoin is currently trading at $105,000, up 2.80% in the last 24 hours, and the price has pulled back slightly from its record high.
Analysts attribute Bitcoin's record-breaking rally to a combination of institutional demand, rising adoption, and supportive market developments.
“This new all-time high is a turning point for Bitcoin,” said Rachael Lucas, crypto analyst at BTC Markets. “It signals that Bitcoin is shifting from a retail-focused asset to one increasingly dominated by institutional investors, ETFs, and corporate adoption, further solidifying its status as a legitimate asset class.”
Key Factors Behind the Increase
US President-elect Donald Trump has sparked optimism in the crypto market with his recent announcement of creating a strategic crypto reserve and promising to “do something great” with crypto.
MicroStrategy Joins Nasdaq 100
MicroStrategy, a major Bitcoin holder with reserves worth over $44 billion, announced on December 23 that it will join the Nasdaq 100 index. Co-founder Michael Saylor also fueled the excitement with social media posts hinting at additional Bitcoin purchases.
Riot Platforms' Bitcoin Purchase
Bitcoin mining giant Riot Platforms further boosted market sentiment on Friday by announcing that it purchased 5,117 Bitcoins at an average price of $99,669 per coin.
The Federal Reserve’s final FOMC meeting of the year on Wednesday is drawing a lot of attention from investors. The probability of a 25 basis point rate cut is 97.1%, according to CME Group’s FedWatch tool, which could provide further support for Bitcoin and other risk assets.
“The FOMC meeting will provide important insights into the Fed’s monetary policy trajectory,” said Min Jung, an analyst at Presto Research. “Any dovish signals, combined with expectations for Trump’s crypto-related policies, could trigger another rally for Bitcoin.”
As we approach the end of 2024, market participants remain optimistic about Bitcoin’s continued growth potential. With deepening institutional participation and macroeconomic factors aligning, analysts are predicting a strong start for Bitcoin in the new year.
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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