Bitcoin slides from $100,000

Bitcoin lost its upward momentum on Monday and its price dipped from the key $100,000 level to approximately $97,000. If BTC price declines, support can be found at $90,800, while resistance may be encountered at the recent all-time high of $104,446. 

Ethereum also weakened on Monday, dropping from the key $4,000 level to below $3,700. If Ethereum's price declines, it may encounter support near $3,250, while if it increases, resistance may be encountered near $4,080.

Bitcoin price has been attempting to go through the key $100,000 barrier for the past few weeks. Bitcoin price rose above the $100,000 milestone last week for the first time in history, registering a new all-time high of $104,446. Bitcoin lost its upward momentum on Monday, however, as many traders rushed to sell near-record-high prices. 

Reports that Trump plans to appoint Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC) boosted crypto markets last week. Atkins is currently the CEO at Patomak Global Partners and has served as SEC commissioner in the past. Atkins’ appointment raised market expectations of less stringent legislation for cryptocurrencies, propping up crypto markets.

US President-elect Donald Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. Growing expectations that the new government will adopt a pro-crypto regulatory and fiscal policy have been boosting crypto markets, especially since Donald Trump announced plans to accumulate a national Bitcoin stockpile. 

Geopolitical concerns are promoting a risk aversion sentiment, however, lowering the appeal of high-risk assets such as cryptocurrencies. A 60-day ceasefire between Israel and Lebanon has been officially declared. Reports, however, that Israel has been repeatedly violating the ceasefire, lowered risk sentiment last week. Meanwhile, the civil war in Syria was rekindled last week, further destabilizing the region.

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates are restricting economic growth, putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. Market odds of a December rate cut rose to 90% after the release of robust US labor data on Friday, propping up cryptocurrencies. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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