Key Points
- Bitcoin price is moving towards $100K, with potential for a new all-time high of $110K.
- The surge is driven by the US equity market’s Santa Claus rally and MicroStrategy’s plans for more Bitcoin purchases.
The US equity market’s Santa Claus rally has propelled the price of Bitcoin towards the $100K mark. Following a 1.1% increase in the S&P 500, Bitcoin has once again reached the $100K level, sparking investor anticipation for a new all-time high of $110K and beyond.
The bullish Christmas momentum has seen Bitcoin rise to $100K, sparking hopes for a wider cryptocurrency market rally. The surge has reignited trader optimism, with growing speculation that Bitcoin could reach $110K soon. However, Santiment, a blockchain analytics platform, reported that crowd sentiment needs to cool down for Bitcoin to reach new all-time highs.
MicroStrategy’s Influence and the Santa Claus Rally
The recent Bitcoin price rally comes after MicroStrategy announced its plans to issue more shares to raise funds and continue its Bitcoin purchase plans. Sean McNulty, director of trading at liquidity provider Arbelos Markets, stated that the market is being forward-looking about MicroStrategy’s Bitcoin purchases, which has been a significant reason for the market’s rise.
The Christmas period has traditionally been positive for Bitcoin and the overall crypto market. With the S&P 500 picking up pace, the crypto market could follow suit. The anticipated Santa Rally may have started, as the S&P 500 delivered one of its strongest performances during the festive period. Historically, the seven trading days starting on Christmas Eve yield an average return of +1.3% for the index.
Bitcoin has always maintained a strong correlation with the S&P 500, indicating that the current uptick could be a sign of what’s to come for Bitcoin. Crypto analyst Captain Faibik stated that the Bitcoin price is moving in an upward trending channel and is on its way to reclaiming $110K.
After a healthy pullback from the all-time high levels of $108K earlier in December, Bitcoin’s price seems set to break past $100K levels once again. Ahead of the monthly options expiry, Bitcoin is experiencing greater volatility. Amid the current price action, the 24-hour liquidation has soared to $65 million.
