The price of bitcoin was a few moments above US$93,000 this Wednesday (13), as expectations of further reductions in interest rates by the Federal Reserve added to the momentum of President-elect Donald Trump’s pro-crypto stance.
The digital asset rose almost 6% in the US on Wednesday, reaching a record high of US$93,462 (around R$543.2 thousand), but was unable to maintain the rise, changing hands to US$91,305 (R$530 .66 thousand) at 9:06 am on Thursday (14). The broader crypto market has swung between gains and losses.
Speculators are trying to analyze whether Trump’s rhetorical support for digital assets will continue to boost Bitcoin, paving a path to $100,000, or give way to a wave of profit-taking after a 34% advance since the US election. on November 5th.
“After such an extensive movement, it is reasonable to think that we will see opinions shift, resulting in an increase in two-way flows,” Chris Weston, head of research at Pepperstone Group, wrote in a note. “Still, Bitcoin is trending higher – for now – and I would expect buyers to re-enter the action once the liquidation of a concentrated position has ended and we move to a cleaner position.”
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U.S. inflation data on Wednesday met analysts’ projections, prompting investors to increase bets on another quarter-point Fed rate cut in December. At the same time, Trump’s broader platform of protective tax cuts and trade tariffs complicates the picture by threatening to fuel future price pressures.
The president-elect has promised to create a cryptocurrency-friendly regulatory framework, establish a strategic Bitcoin stockpile and make the US the global hub of the sector. Once skeptical of cryptocurrencies, Trump changed tack after digital asset companies spent heavily during the election campaign to promote their interests.
There are still doubts about the viability of these promises and the possible implementation schedule. Trump and his Republican Party have unified control of the elected branches of government, but issues of state such as economic and fiscal policy may be the first to come into play.
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Billionaire Michael Novogratz, founder of crypto-focused Galaxy Digital LP, said on Bloomberg Television that the chances of a US Bitcoin strategic reserve are low, adding that the largest token could rise to $500,000 if one materializes.
The cryptocurrency rally is spreading across the financial sector, generating spikes in trading volumes and inflows into US Bitcoin exchange-traded funds. MicroStrategy Inc. — a software company that has adopted Bitcoin on its balance sheet — is pushing a Bloomberg gauge for U.S. convertible debt toward its best month this year.
