Bitcoin crosses $101000 on 12 December for the third time this week, led by fresh optimism over the US inflation data and its potential for a Federal Reserve interest-rate cut. The world’s most valuable cryptocurrency has been advancing since it touched its high of $103,800 on 5 December; however, profit-taking has periodically pushed it below the level of $100,000.
Inflation Data Boosts Confidence
Recent U.S. Consumer Price Index figures came in line with expectations, boosting prospects of the Fed cutting borrowing cost at its next meeting further. That has provided for a string of positive vibes in the crypto space, with bitcoin jumping 5% in trading hours on December 11 and to $100,665 at 8:52 a.m. in Singapore on December 12.
As of 9:00 a.m. IST in Mumbai, Bitcoin was trading at $101,373—a 4.3% increase over the previous day—according to CoinMarketCap. Bitcoin’s market capitalization climbed to $2.01 trillion, contributing significantly to the global cryptocurrency market cap, which rose by 5.53% to $3.64 trillion.
Bitcoin’s remarkable 50% rise since Donald Trump’s victory in the U.S. presidential election last month highlights the influence of macroeconomic and political factors. The President-elect’s pro-crypto stance and his plans to undo the regulatory restrictions imposed by the Biden administration have bolstered market sentiment.
The inflow of $11 billion into U.S. Bitcoin exchange-traded funds since November has further supported the rally. Ethereum, the second largest cryptocurrency, has also attracted $2.4 billion in investments during the same period.
Avinash Shekhar, Co-Founder and CEO of Pi42, maintained that the momentum of Bitcoins was still on the high side, targeting $112,000 and $125,000 respectively. However, resistance would build at $104,088 and trigger short-term consolidation.
“Optimism about the Fed rate and macroeconomic stability has held up the crypto market,” observed Shekhar. Other cryptos such as Ethereum, XRP, Dogecoin also have big potential on the upside.
Ethereum is aiming to break out above $4,000, which could reach as high as $4,500. XRP is bouncing from the support levels of over $2.30 to touch $3.50. And finally, Dogecoin, coming from the extreme oversold territory, means rising demand and a bigger altcoin rally. Here are the strategic Bitcoin plans under way:
Adding to the bullish sentiment, President-elect Trump has hinted at plans for a “strategic national Bitcoin stockpile,” although specifics remain unclear. Eric Trump, speaking to Bloomberg TV, described his father as a “tremendous ally” to the crypto industry, further boosting confidence among investors.
As Bitcoin’s grip over the $100,000 level becomes more significant, everyone in the market is awaiting the Federal Reserve’s interest rate decision. With macroeconomic factors well in favor and increasing cryptocurrency acceptance, the crypto space seems all set to flourish further with Bitcoin at its helm.
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