Bitcoin broke above its $100,000 price tag for the first time this year as a significant tailwind continues to spur trader sentiment following last year’s historic run.
At the time of writing, the Bitcoin price has reached as high as $101,192 before retracing slightly, according to CoinGecko. It's still well far of its all-time high of $108,135.
Sunday’s move follows a nearly three-week period where the world’s largest digital asset traded below the psychological milestone, having dropped 5.6% in a single day on December 18.
While crypto and broader equities shuddered when the Federal Reserve announced its revised dot plot outlook for future interest rate cuts in late December, the mood remains optimistic, with some of last year’s most popular digital assets gunning for a recovery.
Still, crypto’s trading environment remains “mixed” following the December FOMC meeting and the subsequent holiday season, according to digital asset investment research firm 10x Research.
“Rather than a continuous rally, Bitcoinappears to be navigating a tactical trading range, presenting opportunities for strategic positioning rather than a straightforward bullish trend,” the firm wrote in a note to investors on Sunday.
President-elect Donald Trump’s plan to implement a U.S. strategic Bitcoin reserve following his inauguration on January 20 continues to weigh on investor’s minds.
The proposal involves the U.S. government retaining its current bitcoin holdings—approximately 210,000 bitcoins valued at around $21 billion, primarily acquired through criminal seizures—and potentially acquiring more.
It aligns with the Bitcoin Act of 2024, proposed by Senator Cynthia Lummis, which calls for the U.S. Treasury and the Fed to acquire 1 million bitcoins over five years, about 5% of the global supply.
Whether Trump can follow through on his promise once he regains the Whitehouse this month remains to be seen. Still, experts Decrypt previously spoke to say the mere prospect put forward by a future president will continue to bolster the outlook for the first half of the year.
Edited by Stacy Elliott.