Bitcoin clings to $95,000 as dollar plummets
The leading cryptocurrency shows resilience amid dollar instability, driven by Trump's victory and a favorable environment for cryptocurrencies.
The price of bitcoin consolidated at USD 95,643.98, with a slight drop of 0.23%, while the US dollar experiences its first weekly drop in nine weeks. Donald Trump's electoral victory and his support for the crypto sector generate an optimistic environment for investors.
BTC remains in a clear uptrend, supported by its position above the EMA25, EMA50 and EMA200 exponential moving averages / TradingView
Bitcoin: stability in times of uncertainty
Bitcoin, the most valuable cryptocurrency in the world, closed at USD 95,643.98 on the Binance exchange, showing a slight loss of 0.23%. Despite this setback, BTC remains in a clear upward trend, supported by its position above the exponential moving averages EMA25, EMA50 and EMA200. This behavior suggests a strong positive sentiment in the market, even though bitcoin is currently in a pullback after approaching the psychological mark of USD 100,000.
The recent drop in trading volume over the past three days indicates that sellers do not have enough strength to push the price down. This suggests that bitcoin could remain in a consolidation or sideways phase in the medium term before resuming its bullish momentum.
The dollar in decline: a favorable context for bitcoin
The dollar index fell below 106 on Friday, marking a weekly loss of approximately 1.5%, the first in nine weeks. This pullback was initially triggered by the nomination of Scott Bessent as US Treasury Secretary. This generated a sense of stability in the markets and eased concerns about drastic changes in economic policies under the incoming Trump administration.
The dollar's fall intensified after the publication of PCE inflation data that met market expectations. This suggests that the Federal Reserve will maintain its stance on interest rate cuts. Markets are currently pricing in a 66.5% chance of a 25 basis point cut in December, compared to 55.9% the week before.
Trump's impact on the crypto ecosystem
Donald Trump's election victory has been a key factor in the recent momentum of the cryptocurrency market. During his campaign, Trump promised to support the crypto sector and reduce regulations imposed by the SEC, which generated renewed optimism among investors. This favorable environment led to bitcoin recording gains of over 32% in the last month, with its market capitalization reaching USD 1.91 trillion.
In addition, open interest in bitcoin futures contracts stands at USD 61.21 billion, marking an increase for the fourth consecutive day, although it remains the eighth day of decline after reaching an all-time high. On the other hand, the market capitalization of Bitcoin ETFs hit a new record high of $107.10 billion, reflecting growing institutional interest in the digital asset.
Future Outlook: What to Expect from Bitcoin
With Bitcoin showing remarkable resilience in an environment of economic uncertainty, analysts suggest that the asset could continue to attract safe-haven investors. The falling dollar, combined with political support for Bitcoin, could create a favorable scenario for Bitcoin to break through the $100,000 barrier in the near future.
However, investors should keep an eye on the Federal Reserve's decisions and the new administration's economic policies. These factors could significantly influence the direction of the market.
Bitcoin is positioned as an attractive asset amid the dollar's instability and growing political support. With a favorable macroeconomic environment and strong technical support, the leading cryptocurrency could be on track to reach new all-time highs. The next few months will be crucial in determining whether bitcoin can consolidate its position as a safe haven in uncertain times.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies carries risks and it is important to conduct thorough research before making investment decisions.