Bitcoin’s march towards historic US$100,000 level stalls as crypto investors show caution

‘Bitcoin was extremely overbought since the election,’ one analyst says

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Bitcoin hovered near US$97,000 early in Asia on Monday. Photo: AP Photo

Published: 9:51am, 25 Nov 2024

Bitcoin retreated after a rally toward US$100,000 sputtered just shy of the historic level amid warnings that investor optimism stemming from president-elect Donald Trump’s support for cryptocurrencies was getting overdone.

The digital asset fell as low as US$95,776 on Sunday after coming within US$300 of the six-figure milestone on Friday. It struggled for traction near US$97,000 early in Asia on Monday, setting a downbeat tone for the wider crypto market.

“Investors are worried it will have to take a breather now that it has basically tested the US$100,000 level,” said Matt Maley, chief market strategist at Miller Tabak + Co. “I’d note that bullishness surrounding bitcoin is getting extreme.”

Trump’s incoming US administration is viewed as a crypto tailwind across Wall Street and beyond. The overall value of the digital-asset market has surged about US$1 trillion since the Republican’s victory on November 5.

An electronic signboard showing the prices of bitcoin and other cryptocurrencies at an exchange in Seoul, South Korea. Photo: AP Photo

Trump has promised friendlier regulations and pledged to set up a national bitcoin stockpile, though the timeline for implementation and the feasibility of the bitcoin reserve remain open questions.