Bitcoin price reclaimed the $100,000 (€96,300) mark on Monday, spurred by a sharp drop in the US dollar, signaling a renewed interest in the cryptocurrency. However, analysts remain cautious, noting that the rally might not be sustainable due to low trading volumes and the absence of a fresh catalyst.
The price of Bitcoin surged by 4% on Monday, crossing the $100,000 threshold for the first time since December 19. This was accompanied by over $900 million (€867 million) in spot Bitcoin exchange-traded fund (ETF) inflows, reflecting increased investor demand. Despite this, the sustainability of the rally is uncertain, as institutional buying volumes remain relatively low, according to data from Coinbase.
By early Tuesday in the Asian session, Bitcoin had slightly retreated, trading at $101,670 (€97,900) as of 4:30 am CET. The market saw a ripple effect, with global stock markets and other assets buoyed by Bitcoin’s movement. The euro also posted its largest single-day gain against the US dollar in 14 months.
However, the strengthening dollar may continue to exert pressure on Bitcoin and other currencies. Bitcoin’s price could remain in a holding pattern until a new catalyst emerges to drive further momentum.
Meanwhile, the options market shows rising interest in a price above the $100,000 level, with the most popular contract on Deribit being a $120,000 (€115,600) call with an expiry date of March 28. This suggests that traders may be anticipating favorable regulatory moves under the incoming Trump administration, which has expressed pro-cryptocurrency intentions.
Trump’s inauguration, scheduled for January 20, has sparked speculation that his administration will relax cryptocurrency regulations and work toward establishing the United States as the “crypto capital of the planet.” In December, Trump reiterated his plan to include Bitcoin in the US strategic reserves.
