Bitcoin (BTC) reclaimed $100,000 after registering an increase of over 4% in the past 24 hours as the crypto market rallied following the release of the November inflation data. The world’s largest cryptocurrency almost crossed $102,000 after reaching an intraday high of $101,819 before retreating to its current level. The move past $100,000 comes after BTC spent several days between $94,000 and $98,000.
Other cryptocurrencies also registered substantial increases over the past 24 hours. Ethereum (ETH) is up over 7% in the past 24 hours and is on the verge of going above $4,000. Ripple (XRP) also recovered from its recent slump up 4%. Solana (SOL), which had seen a substantial decline, has also recovered and is up almost 6%, trading at $230. With the markets posting a strong recovery, the crypto market cap is up nearly 6% and currently sits at $3.65 trillion.
Crypto Markets Recover
Bitcoin (BTC) climbed above $100,000 for the first time since it set a new all-time high of $103,900. BTC’s rally also pulled up other altcoins, with most registering substantial gains. Crypto stocks also registered a sharp jump, with Coinbase and MicroStrategy registering gains of 3% and 9% respectively. The crypto markets got a boost thanks to the November consumer price index numbers, which came in as expected. The consumer price index numbers registered an increase of 0.3% from October and a 2.7% increase from a year ago.
However, despite the recent price jump, investors expect BTC to struggle around the $100,000 mark in the short term but remain optimistic that its value could double by the end of the year.
US Bankers Remain Cautious On BTC
US bankers remained cautious about Bitcoin (BTC) and other cryptocurrencies when speaking at the Reuters NEXT conference held in New York earlier this week. The cautious tone comes despite the expectation of a crypto-friendly administration under the incoming Trump administration. Trump secured the backing of major players from the crypto ecosystem by promising to be a “crypto” president and end the Biden administration's crackdown on the sector. However, despite the assurances, banks remain cautious about dealing with an inherently volatile asset and market. Goldman Sachs Chief Executive, David Solomon, stated,
“The regulatory framework has to evolve, and everyone’s speculating as to how that regulatory framework will evolve, but it's still unclear. But, for now, our ability to act in these markets is extremely limited.”
Solomon added that if the rules change, Goldman Sachs will evaluate dealing in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). BNY recently began offering custody of crypto assets held by exchange-traded products. The bank is also investing in an array of digital assets. However, its CEO believes anything new must be done with appropriate guard rails and tested through a few macroeconomic cycles.
During the Biden administration, regulators made it difficult for lenders to hold crypto tokens. They also issued accounting guidance, making it costly for banks to offer crypto custody services. However, that is expected to change once Trump enters the White House, with the crypto industry pushing for several policies to promote the adoption of digital currencies. Trump announced he would make former PayPal executive David Sacks the White House Crypto Czar and nominate pro-crypto attorney Paul Atkins as SEC Chair.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a strong rebound from a low of $95,821 as markets recovered after November’s consumer price index numbers came along expected lines. The numbers raised expectations of another Federal Reserve rate cut, boosting crypto prices. BTC has surged considerably since Trump’s election victory. The President-elect has also made significant moves to undo crackdowns imposed by the Biden administration and outgoing SEC Chair Gary Gensler. BTC surged to an all-time high of $103,900 in the first week of December before dropping to trade between $94,000 and $98,000. It struggled to regain the $100,000 mark as traders booked profits. However, the latest inflation numbers are boosting the price again.
Bitcoin (BTC) experienced significant volatility last Thursday as it sent a new all-time high before dropping to an intraday low of $92,285, briefly dipping below the 20-day SMA before settling at $97,093. However, it recovered on Friday, rising by almost 3% and settling at $99,695, falling just short of the $100,000 mark. BTC remained positive over the weekend, registering a marginal increase on Saturday and then rising by 1.32% on Sunday to climb above $100,000 and settle at $101,043.
Source: TradingView
BTC’s foray above $100,000 was short-lived, as sellers returned to the market on Monday. The crypto market’s sudden crash on Monday saw BTC dip to an intraday low of $94,177 as it slipped below the 20-day SMA. However, it recovered from this level to settle at $97,434, ultimately registering a drop of 3.57% and settling above the 20-day SMA. Sellers retained control on Tuesday as BTC fell to a low of $94,307 before settling at $96,914. The price recovered on Wednesday as markets rallied following the release of November’s consumer price index numbers. As a result, BTC registered an increase of over 4% to reclaim $100,000 and settle at $100,900. The current session sees BTC marginally down as sellers look to push it below $100,000.
If sellers retain control, BTC could slip below $100,000 and drop to $97,000, where the 20-day SMA could prop up the price. On the other hand, if buyers regain the upper hand, BTC could climb to $105,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is looking to go above the resistance at $4,000 as it makes a strong recovery from Tuesday’s low of $3,521. ETH experienced significant volatility on Thursday as it rose to an intraday high of $3,957 and fell to an intraday low of $3,644 before settling at $3,787, registering a decline of 1.48%. However, it recovered on Friday, registering an increase of almost 6% to climb above $4,000 and settling at $4,003. ETH registered a marginal drop on Saturday, slipping below $4,000 and settling at $3,999. However, it reclaimed $4,000 on Sunday after a marginal increase pushed the price to $4,007.
Source: TradingView
ETH could not remain above this level as bearish sentiment intensified on Monday after a sudden crash in the market. As a result, ETH dropped over 7% to an intraday low of $3,504 before recovering to climb above the 20-day SMA and settle at $3,716. Sellers retained control on Tuesday as the price dropped to a low of $3,521 before settling at $3,630 after a drop of 2.32%. ETH made a strong recovery on Wednesday, rising almost 6% and moving to $3,834. The current session sees ETH up nearly 3% as buyers look to push it above $4,000. A move above this level could see ETH push towards $4,400.
Solana (SOL) Price Analysis
Solana (SOL) has rebounded strongly from a low of $203 as it looks to move above the 20-day SMA and the resistance at $240. SOL faced considerable volatility almost all of last week as it attempted to move above the 20-day SMA but was repeatedly pushed back. SOL reached an intraday high of $244 last Thursday as it briefly went past the 20-day SMA. However, buyers lost momentum after reaching this level, and SOL fell back, dropping to $236 and registering an increase of 2.84%. Friday saw SOL push above the 20-day SMA again, but it fell back to $237, registering only a marginal increase.
Source: TradingView
With resistance persisting at this level, SOL could only register a marginal increase on Saturday before dropping on Sunday to settle at $237 after a drop of 0.48%. Bearish sentiment intensified considerably on Monday as SOL plummeted 8.55%, driven by a broader market crash. As a result, the price dropped to an intraday low of $205 before settling at $216. Sellers retained control on Tuesday as SOL dropped 1.47% and settled at $213. However, it recovered on Wednesday, rebounding from the 50-day SMA to register an increase of 6.38% and settle at $227, going beyond the immediate resistance at $220. The current session sees SOL up by 1.41% as buyers look to move above the 20-day SMA and reclaim $240. A move above these levels could see SOL retest the resistance at $250.
Ripple (XRP) Price Analysis
Ripple (XRP) registered a sharp decline last week despite starting on a bullish note. By Thursday, XRP had dipped from a low of $2.90 to $2.24 as bearish sentiment intensified its grip significantly. Despite the prevailing bearish sentiment, XRP recovered on Friday, registering an increase of over 8% and settling at $2.42. Buyers retained control on Saturday as XRP jumped by 7.55% to move past $2.50 and settle at $2.61. However, sentiment changed on Sunday as buyers lost momentum. As a result, XRP registered a marginal drop to slip to $2.60.
Source: TradingView
Bearish sentiment intensified significantly on Monday as markets crashed. As a result, XRP fell almost 15%, plummeting to a low of $2.02. However, buyers prevented a further decline and propped the price up to $2.21. XRP faced considerable selling pressure on Tuesday as sellers drove it to a low of $1.90. However, it recovered from this level to register an increase of over 7% to reclaim $2 and settle at $2.37. XRP saw increased volatility on Wednesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand, and XRP registered an increase of 0.91% and settled at $2.39. The current session sees XRP up just over 2% as it attempts to reclaim $2.50.
Uniswap (UNI) Price Analysis
Uniswap (UNI) faced a substantial drop last week, falling from an intraday high of $17.24 on Thursday to $14.38 before settling at $15.04. The price recovered on Friday as it surged almost 17% to go above $17 and settle at $17.58. Buyers retained control over the weekend as UNI registered an increase of 2.43% on Saturday and 3.30% on Sunday to settle at $18.61. However, sentiment changed abruptly on Monday as UNI fell sharply, registering a drop of almost 14%, falling to an intraday low of $13.99 before recovering to climb above support levels and settle at $16.05. Sellers retained control on Tuesday as UNI dropped over 5% to $15.24. Sellers had driven the price to a low of $14.04.
Source: TradingView
However, it recovered on Wednesday, rising over 12% and settling at $17.15. The current session sees UNI up almost 8% as it looks to move past the resistance at $19.
Chainlink (LINK) Price Analysis
Chainlink (LINK) started the previous week with a staggering increase of over 33.16% as it surged past $20 and settled at $25.22. However, buyers lost momentum after reaching this level as LINK registered a drop of 4.35% on Tuesday and settled at $24.12. Buyers attempted a recovery on Wednesday as LINK reached an intraday high of $26.52. However, it fell back after reaching this level and registered a marginal drop to settle at $24.10. Sellers retained control on Tuesday as LINK fell almost 4% to $23.12. However, it recovered on Friday, surging nearly 12% to go above $25 and settle at $25.88.
Source: TradingView
LINK had a mixed weekend as it registered a drop of over 4% on Saturday and rose by 5.23% on Sunday to settle at $26.10. However, sentiment changed dramatically on Monday as LINK plummeted from an intraday high of $27.36 to an intraday low of $19.78. LINK ultimately settled at $22.31 after registering a drop of 14.53%. LINK experienced significant volatility on Tuesday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as LINK registered a marginal drop to settle at $22.13. LINK recovered on Wednesday as it rebounded from an intraday low of $21.16, registering an increase of 8.16% and settling at $24.06. Bullish sentiment has intensified significantly during the current session, with LINK up a staggering 21% as it looks to go above $30.
Algorand (ALGO) Price Analysis
Algorand (ALGO) has been experiencing significant volatility since reaching an intraday high of $0.613 last Tuesday. The price plummeted after reaching that level and had dropped to $0.45 by Thursday. Despite the prevailing selling pressure, ALGO recovered on Friday, rising almost 11% to $0.499. The price moved past $0.50 on Saturday, rising to $0.509 despite considerable selling pressure. Sellers re-established control on Sunday as ALGO fell below $0.50 after a drop of just over 2% and settled at $0.498.
Source: TradingView
Bearish sentiment intensified on Monday as ALGO plummeted over 16%, falling to a low of $0.352 before settling at $0.417. The price dropped to an intraday low of $0.370 on Tuesday as sellers sought to retain control. However, ALGO recovered from this level to register an increase of 1.52% and settle at $0.423. ALGO continued to push higher on Wednesday and registered a rise of 7.04% to settle at $0.453. The current session sees ALGO up just over 3% and trading at $0.467 as buyers look to build momentum and retest the $0.50 level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
