Bitcoin rebounded strongly on Wednesday, leaping past $96,000 after dipping in the early week that briefly plunged it below its recent records. The leading cryptocurrency had risen about 6% to $96,676.70, according to Coin Metrics. Ether, the digital currency token, surged more than 9% to $3,636.46. The digital currency market was more mixed, with the CoinDesk 20 rallying 7%.
While Bitcoin can be likened to a store of value or digital version of gold, the cryptocurrency remains incredibly sensitive to what is transpiring in traditional financial markets. On Wednesday, though, Bitcoin proved resilient as it traded inversely to the entire stock market, which sold off on the day. The Nasdaq Composite slid 0.6 percent and both the Dow Jones Industrial Average and the S&P 500 traded lower in this latest rally that brings Bitcoin closer still to the much-hyped milestone of $100,000, which some investors are speculating might even happen before the end of this year.
Bitcoin began to surge after the election for U.S. president held on November 5 with the cryptocurrency going almost 38% in value. The cryptocurrency peaked at $99,849.99 last Friday before a dip that sent it down to almost $90,000 at some point this week.
Alex Thorn, Head of Firmwide Research at Galaxy Digital, noted that while corrections are a normal part of Bitcoin’s price action, the overall outlook remains bullish. According to Thorn, institutional adoption is rising, corporate interest is picking up, and there may be a pro-Bitcoin U.S. administration in the near to medium term.
According to Katie Stockton from Fairlead Strategies, Bitcoin is in “uncharted territory” regarding the resistance levels and the support is around $74,000. The price of Bitcoin recently broke through the record of $92,000 for the first time on November 13, and Stockton cautioned that Bitcoin has a history of sharp moves before settling down and therefore investors should expect volatility.
Bitcoin is up 126% for 2024 so far and remains high on hopes it crosses the $100,000 threshold before year-end. Ether, while a far cry from the current leaders like Bitcoin in year-to-date performance, still leads in solid 59% growth and among the top performers within the crypto market.