Bitcoin (BTC) has broken through the significant $100,000 barrier once again, marking a resurgence in investor confidence after weeks of consolidation below this level. The uptick comes as optimism grows about the future regulatory environment under President-elect Donald Trump.
Bitcoin Price Approaches Historic Highs
Regulatory developments have taken center stage, with Brian Quintenz emerging as a prominent figure likely to lead the Commodity Futures Trading Commission (CFTC). Quintenz, known for his pro-crypto stance as the policy head at a16z Crypto, is a former Republican CFTC commissioner and a favorite among the crypto community.
Adding to the optimism is the recent appointment of pro-crypto advocate Paul Atkins as the new head of the Securities and Exchange Commission (SEC). This marks a stark departure from the enforcement-heavy approach led by outgoing chair Gary Gensler. Trump’s moves to roll back restrictive policies implemented during the Biden administration have further fueled Bitcoin’s rally, which reached a peak of $104,000 on December 5. Since then, Bitcoin has hovered around the $100,000 mark, demonstrating sustained investor interest.
Market Optimism and Fed Policy Expectations
Expectations of a potential interest rate cut by the US Federal Reserve (Fed) have further strengthened bullish sentiment. With inflation data meeting forecasts, speculators are increasingly betting on lower rates, driving markets higher. The tech-centric Nasdaq 100 has hit record levels, reflecting broader market enthusiasm.
Henry Elder of UTXO Management remarked, “The market is encouraged by inflation aligning with expectations,” as traders assess whether $100,000 will act as a support or resistance level for Bitcoin.
President Trump has also suggested establishing a strategic national Bitcoin reserve, a controversial yet intriguing proposal. Eric Trump added on Bloomberg TV that his father would be “an incredible ally for the crypto industry.”
Institutional Activity Signals Further Growth
Since Trump’s victory on November 5, Bitcoin has surged nearly 50%, supported by $11 billion in net inflows into US spot Bitcoin ETFs. Technical analyst Ali Martinez highlighted that whales have been buying aggressively during recent dips. Notably, 342 new wallets holding over 100 BTC were created when prices dropped from $104,000 to $90,000.
This accumulation trend has reinforced bullish sentiment, with Martinez forecasting a price target of $275,000 based on a cup-and-handle pattern on Bitcoin’s weekly chart.
