Bitcoin (BTC) experienced a sudden surge towards $100,000 during the U.S. afternoon after trading in a tight range earlier in the day. Despite briefly dipping below $95,000, BTC later spiked nearly 5% to reach a session high of $99,177. The largest cryptocurrency by market capitalization was up 3.2% in the past 24 hours, outperforming the broader market benchmark CoinDesk 20 Index’s 1.3% gain. This price action occurred as the “Coinbase Premium,” a metric indicating BTC demand among U.S. investors, reached rare highs, with BTC being over $300 pricier on Coinbase compared to Binance during the surge.
The Coinbase Premium, which measures the price difference for BTC on Coinbase versus prices on Binance, suggests strong demand among American market participants. This surge in price came following Federal Reserve Chair Jerome Powell’s comparison of bitcoin to a digital version of gold and a competitor of the precious metal during an appearance at the New York Times DealBook event. Additionally, prices jumped as Donald Trump nominated Paul Atkins, who is considered friendly towards crypto, to run the Securities and Exchange Commission. Bitcoin has been attempting to break through the $100,000 milestone for the past two weeks, fueled by optimism surrounding Trump’s election, but heavy profit-taking has prevented it from doing so.
According to CoinDesk senior analyst James Van Straten, history indicates that BTC may require multiple attempts to break through the psychologically significant $100,000 level. Despite the recent surge, BTC remains below the milestone, showcasing the resistance it faces. As the market continues to speculate on potential catalysts for a sustained breakout past $100,000, bitcoin investors are closely monitoring developments in the cryptocurrency space. It remains to be seen whether BTC will successfully breach the $100,000 mark in the near future or if further consolidation and attempts will be necessary.
With the recent volatility and price movements in the cryptocurrency market, investors are closely watching BTC’s performance and anticipating potential opportunities for profit. The surge towards $100,000 highlights the ongoing battle to surpass this milestone and the factors driving this bullish momentum. As BTC continues to be influenced by various market dynamics, including macroeconomic factors and regulatory developments, the crypto community is eagerly awaiting further insights into the future price trajectory of bitcoin. The Coinbase Premium and market sentiment will play a crucial role in determining the direction of BTC in the coming days and weeks.
