PrimeXBT: Bitcoin Shoots Over 100k as Risk Appetite Soars – How to Take Advantage of BTCs Next Move

• Bitcoin hits an ATH of 103.9k
• Trump selects crypto-friendly Paul Atkin SEC chair
• Institutional demand is strong & retail demand soars
• Risk on sentiment sees other risk assets reach record highs
• Where next for Bitcoin’s price?
• Trading Bitcoin with Prime XBT

Bitcoin has surged past the 100k psychological level to set a new record high. It is up almost 50% over the past month and 67% since early October, when it was trading around 60k. The latest leg higher for the world’s largest cryptocurrency comes following President-elect Donald Trump’s selection of Paul Atkin to chair the Securities and Exchange Commission (SEC), replacing Gary Gensler.

Bitcoin rose past 99.8k and 100k to hit an ATH of 103.9k on optimism that Paul Atkin will bring more crypto-friendly regulation to Washington after the scrutiny of Gary Gensler, who cracked down hard on the sector. Paul has been vocally supportive of crypto and is expected to allow for innovation and new forms of offering, stoking hopes of more digital asset ETFs.

Trump’s announcement caused Bitcoin to jump 5% over the past 24 hours, bringing its market cap to $2 trillion while paving the way for a new institutional era for Bitcoin.

Strong institutional demand helped Bitcoin ETFs see record-breaking inflows of $6.4 billion in November, and inflows have already reached $1 billion in early December.

Corporate adoption is becoming another important flow. MicroStrategy, the largest corporate holder of cryptocurrency, announced an additional purchase of 15,400 tokens last month valued at $1.5 billion, taking its total holdings to 402,100 bitcoins.

In addition to strong institutional and growing corporate demand, retail participation is soaring to levels not seen in years, which could help sustain momentum, especially as some long-term holders book profits.

The break above the key 100k milestone will likely spur further attention, draw in more participants, and potentially spark a super cycle stage.

Risk on Mood

Bitcoin surging over 100k comes as other risk assets also reached record levels. The S&P 500, the NASDAQ 100, and the German DAX have risen to all-time highs.

The market appears to be in a sweet spot where there is plenty of optimism over what a Trump Presidency could bring. According to recent data, the US economy is solid, as noted by Federal Reserve chair Jerome Powell, and interest rates are expected to fall, albeit at a slower pace.

However, there are risks to the outlook, which principally centre around Trump’s proposed trade tariffs -what they could mean for supply chain disruptions, risk sentiment, and the Fed’s ability to cut rates.

What’s Next for Bitcoin’s Price?

Bitcoin broke above its record high of 99.8k, shooting above 100k to a peak of 103.9k. A continuation of the bullish trend could bring 110k, the round number, into play. Above here, BTC could test the 100% Fib extension at 123k before looking to the 161% Fib extension as a peak (as it did in 2020) at 143k.

The RSI is overbought, so buyers should be cautious. That said, RSI gives no indication of the timing, and Bitcoin could remain overbought for an extended period, as seen on previous occasions.

Trading Bitcoin with PrimeXBT

The latest news has boosted BTC to a record high, and with Trump set to assume the Presidency next month, there could be plenty more news and volatility to come. Traders can take advantage of this by getting started with PrimeXBT, a leading multi-asset broker who specializes in crypto, and trading the news and technical patterns as they happen.

PrimeXBT offers an all-in-one platform for buying and trading cryptocurrencies, including CFDs and futures. With some of the lowest trading fees in the industry, competitive leverage options, deep liquidity, and fast execution, the broker enables traders to capitalise on market opportunities.

To help traders get started, PrimeXBT is offering a deposit bonus of up to $2,000 with the promo code PUMP2024, valid until 17 December 2024 (T&Cs apply).

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