Altcoins operate with drops of up to 7% thanks to TRON, Avalanche (-6.4%), Stellar (-5.3%) and Cardano (-4.6%). A piece of news made cryptocurrencies rebound but they failed to sustain the price.
After reaching a new historical record at US$108,000, Bitcoin It falls more than 1.4% and stands at US$105,300. Meanwhile, Ethereum fell below US$4,000 and is trading at US$3,889.
Altcoins operate with drops of up to 7% thanks to TRON, Avalanche (-6.4%), Stellar (-5.3%) and Cardano (-4.6%). The latest increases came after Donald Trump reiterated his intention to create a strategic reserve of bitcoins in the United States to protect the economy from inflation and the devaluation of the dollar. The president-elect’s plan has been well received by numerous experts and investors, although his critics also number in the thousands.
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Donald Trump’s recent statements gave new impetus to digital assets, while the inclusion of MicroStrategy on the Nasdaq 100 index has been another key factor for the price rise. The company, led by Michael Saylor, is the largest institutional holder of bitcoin worldwide since it adopted its investment strategy in this cryptocurrency in 2020.
“The recent incorporation of MicroStrategy to Nasdaq 100 highlights the growing relevance of bitcoin in the technology sector. This reinforces its legitimacy as a solid investment option and demonstrates its ability to compete with traditional assets in terms of value and relevance,” says Antonio Di Giacomo, markets analyst at XS.com.
Javier Molina, senior analyst at eToro, emphasizes that this inclusion “allows pension funds, mutual funds and insurance company portfolios that use this index to indirectly invest in bitcoin through MicroStrategy, without needing to be directly exposed to the digital asset. This further strengthens the institutional adoption of bitcoin.” Furthermore, it highlights that BlackRock is promoting a 2% allocation in bitcoin within diversified portfolios, which amplifies the impact of this movement.
A period of consolidation is expected in cryptocurrencies
The experts at 10x Research also underline the rBitcoin’s recent rally after a brief period of consolidation. “As we noted on Friday, cryptocurrency exchanges are seeing significant outflows, reducing the availability of bitcoin on trading platforms. At the same time, OTC tables are depleting their inventory. Together, these factors suggest a possible sharp increase in bitcoin prices,” they explain.
From the technical analysis, Molina points out that the bullish objective is located at “the base of the channel around $108,000”. At that level, it will be crucial to observe market behavior and volatility. “It is interesting to note how flows are once again focused on bitcoin, while altcoins seem to be in a consolidation phase. Capital inflow continues, and the market maintains an atmosphere of euphoria,” he concludes.
Source: Ambito
