During the initial trading hours of Asia on the 5th of December, Bitcoin [BTC] successfully surpassed the significant $100,000 mark, a movement that is likely attributed to recent remarks made by Federal Reserve chair Jerome Powell.
In a conversation with the New York Times, Powell emphasized that BTC is a rival to gold rather than the U.S. dollar. He articulated,
“Bitcoin is utilized by individuals as a speculative commodity, akin to gold but in a virtual form. Its competition is not against the dollar, but against gold.”
Mere hours after Powell’s statement, BTC skyrocketed from $97,000 to a fresh record peak of $104,000, marking an increase of over 50% since the U.S. elections in November.
What Lies Ahead for BTC?
SwissBlock, a research entity in the crypto space, acknowledged the unexpected yet positive influence of Powell’s comments on the digital asset. The firm expressed,
“Hitting the $100,000 milestone with BTC is a momentous occasion! The endorsement of Bitcoin by Federal Reserve Chairman Jerome Powell took us by surprise. Our immediate short-term objective? Reaching $105,000.”
In his analysis, Arthur Azizov, the CEO of B2BINPAY, a comprehensive cryptocurrency platform for businesses, informed CryptoCrypto that the surge was linked to the endorsement of pro-crypto figure Paul Atkins as the chair of the Securities and Exchange Commission (SEC) under Trump’s administration.
Azizov additionally predicted a potential consolidation of BTC around $100,000 before a slight decline towards $85,000.
“I am of the opinion that Bitcoin’s value will stabilize near the $100,000 mark temporarily before retracing to figures with five digits, possibly settling close to $85,000 in the upcoming months.”
Addressing the prevailing rally, the crypto research firm Presto Research warned of a possibility of profit-taking in the market.
However, the firm also highlighted the probability of the $100,000 level attracting increased interest from institutional investors.
“We are inclined to believe that there is further room for advancement in the rally, as there exists latent demand waiting for BTC to surpass 100,000, a milestone that will undoubtedly draw more widespread attention.”
So, what are the crucial upcoming levels for BTC?
According to CryptoQuant’s Ki Young Ju, considering the realized cap price band, BTC could potentially target $146,000 as a peak within the cycle and set $112,000 as the year-end objective.