The Bitcoin has surpassed $99,000 for the first time, continuing a rally based on hopes that Donald Trump will usher in a “golden age” for crypto that will include more supportive regulation for the industry and a possible national strategic bitcoin reserve for the U.S.
The price of cryptocurrency rose as high as $99,046.94 as investors liquidated gains in crypto stocks amid a broader shift away from the technology.
Coinbase crypto exchange Coinbase fell 7.7% and MicroStrategy fell 16.2%.
Bitcoin’s recent moves also triggered a wave of short liquidations – more than $100 million in a 24-hour period at one point, according to CoinGlass – sending the price further up overnight.
“Looking back at previous moves of this magnitude, BTC has historically either gone through a period of consolidation or ignored the overbought situation as investors piled in,” said Rob Ginsberg, an analyst at Wolfe Research.
“Given that we are just coming out of one of these long consolidation periods and price is currently at a new high something tells us that the hunt is on,” he added. “The real test will come when the important psychological level of $100,000 is likely to be reached in the coming weeks.”
Bitcoin has gained about 130% in 2024.
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