Influenced by the positive policy expectations of Trump's inauguration, investor confidence has increased significantly, and on Friday, the prices of crypto assets, stocks, and gold continued to rise.
US stocks stabilized after fluctuating in early trading and closed with a strong momentum. At the close, the S&P 500 index, the Dow Jones Industrial Average, and the Nasdaq Composite Index rose 0.35%, 0.97%, and 0.16%, respectively.
Bitcoin prices continued to rise, reaching a high of $99,880 during the day, with bullish sentiment high, entering the stage of a push towards $100,000.
Old-line Altcoins rose across the board, Solana reached $260 for the first time, setting a new high, XRP rose 20%, and Cardano (ADA) rose 23.5%.
The MEME sector declined, with Goatseus Maximus (GOAT) down 18%, Peanut the Squirrel (PNUT) down 17.5%, and Act I: The AI Prophecy (ACT) down 15.5%.
The current total market capitalization of cryptocurrencies is $3.3 trillion, with Bitcoin's market share at 59.4%.
The six-figure milestone represents a "psychological barrier" in the market
21Shares US business head Federico Brokate said in an interview with CNBC that the six-figure milestone represents a "psychological barrier" in the market, which has been a price target that investors have been focused on since the last Bull Market in cryptocurrencies.
He also pointed out that last week, when BTC price reached the $90,000 milestone with sufficient trading volume, it quickly rose 3-5%. When BTC price reaches $100,000, this scenario may occur again.
Looking back at historical data, in 2017, BTC fluctuated between $6,000 and $9,000, and then soared to around $16,000 after Thanksgiving.
Brokate said: "If this barrier cannot be completely broken by Thanksgiving, we expect the price to fall 15-20% - this correction will test the $80,000 support and weed out highly leveraged and low-conviction participants."
Reaching $100,000 or even more
Multiple analysts believe that during the institutional investor holiday weekend, Bitcoin prices are expected to break through the $100,000 milestone, and the "panic buying" sentiment of retail investors may further drive up the market.
BCA Research Chief Strategist Dhaval Joshi said that there is no need to panic yet, and the market still has a long way to go before entering the next Crypto Winter.
He said in the report: "Although Bitcoin has risen due to the election, its 260-day complexity indicator has not yet reached the 1.2 level, indicating a relatively low risk of Crypto Winter. Therefore, while we should expect some corrections in the short term, the structural upward trend of Bitcoin remains intact, with an ultimate target of over $200,000."
Analysts say that to understand the value of Bitcoin, it needs to be compared to gold. Both assets are seen as "non-confiscatable" assets that can provide some protection against inflation, banking system collapse, or government seizure. As global wealth grows, the network effect value of gold and Bitcoin will also increase, and Dhaval said "the upside potential of Bitcoin is far greater than gold".
Some analysts use technical analysis tools, such as the Elliott Wave Theory, to predict the price trend of Bitcoin.
According to their analysis, Bitcoin may experience a five-wave upward cycle, with the initial target price of the third wave being around $85,000, and if it enters the fifth wave extension, the price may reach $127,000.
Ledn Chief Investment Officer John Glover said in a report: "If we really experience the extension of the third wave/fifth wave, this could take us all the way up to $127,000 (green line in the chart) before completion. But this is not a definite number, just a common target in the case of wave extension."
John Glover said he still expects "BTC to follow the orange line in the chart, and if the trend is confirmed, the final fifth wave target will be much higher (160,000 to 180,000 USD). And if it drops to $75,000/$80,000, that should be a good area to accumulate."
Market analyst Moustache believes that Bitcoin reaching $100,000 is just a matter of hours, but unlike many analysts calling for profit-taking, he believes the FOMO rebound could push Bitcoin up to $120,000.
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