Analysts warn of market volatility and possible pullbacks due to high leverage. However, BTC is unfazed and remains firm on its way to $100,000.
Bitcoin hit a new all-time high of more than $93,000 on Wednesday, driven by optimism that digital assets could benefit from a more favorable regulatory environment following the victory of donald trump in the US presidential elections last week. The largest cryptocurrency hit a peak of $93,445 on Monday, representing a 115% increase so far this year, according to data from CoinDesk.
This Thursday, the cryptocurrency moderates the rise, but the momentum is sustained. However, it is located above US$91,467.7, that is, 2% of its historical maximum of US$93,477.11, which it reached in the last few hours on its way to US$100,000.
What the market analyzes
Several market participants are optimistic and believe that bitcoin could continue to rise until the end of the year. Matt Hougan, chief investment officer at Bitwise, expects bitcoin to reach $100,000 by the end of the year and $200,000 by the end of 2025, citing Trump’s promises to appoint a cryptocurrency-friendly president to the US Securities Commission. and create a bitcoin reserve in the country.
However, investors should be cautious due to bitcoin’s high volatility. Analysts at QCP Capital noted that the market is currently in a “state of euphoria,” with bitcoin perpetual futures yields at seven-month highs, indicating high levels of leverage. While remaining structurally optimistic, analysts warned of potential pullbacks, especially from leveraged washes, and noted that such spikes in basis yields have not lasted long in the past.
As a result, investors will be watching whether Trump continues to express support for digital assets and how he will deliver on his promises to the crypto industry.
Source: Ambito
