Bitcoin On Wednesday, the price of gold rose again above $96,000, recovering slightly from this week's decline that knocked it from record levels.
The price of the major cryptocurrency was recently up nearly 6% at $96,676.70, according to Coin Metrics, while ether It jumped more than 9% to $3,636.46. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, rose 7%.
Although Bitcoin is widely viewed as a store of value and a digital alternative to gold, the cryptocurrency is often traded alongside the stock market. However, on Wednesday it broke away from the tech-heavy Nasdaq Composite, which fell 0.6%. The Dow Jones Industrial Average and S&P 500 also fell.
Coinbase It rose more than 6% as Bitcoin lifted it along with other cryptocurrency stocks. Robinhoodwhich offers cryptocurrency trading and is seen as a beneficiary of a more crypto-friendly environment in the incoming Trump administration, rose 3%. Accurate strategywhich is traded as an alternative to bitcoin, advanced 9%.
Bitcoin has been regularly setting records since the presidential election on November 5, rising by about 38% in that time. On Friday, it rose to a high of $99,849.99 before testing the $90,000 support level this week.
“The Bitcoin bull market has legs,” Alex Thorne, head of corporate-wide research at Galaxy Digital, said in a report on Wednesday. “There will be corrections and bumps, which is normal. There may even be some regulatory or law enforcement actions from the outgoing Biden administration that have markets concerned. But a combination of increasing adoption by institutions, corporations, and perhaps the nation-state, will create a new American governance that is taking shape.” “To be very pro-Bitcoin, strong positioning and network data point to a near- to medium-term upside.”
At current levels, bitcoin investors are in “uncharted territory in terms of where the resistance is — which, of course, there is,” Katie Stockton of Fairlead Strategies told CNBC's “Squawk Box” on Monday. Meanwhile, support stands at around $74,000. Bitcoin reached $92,000 for the first time ever just two weeks ago, on November 13.
“Bitcoin tends to go up and down, which means it sees these very sharp spikes and then it consolidates,” she said. “People should be willing to give bitcoin, and cryptocurrencies in general, more space because of the volatility there and also because of the long-term potential.”
Bitcoin is up 126% this year and is still widely expected to reach the $100,000 level before the year is out. Ethereum, the outperformer since the election, is trailing Bitcoin year-to-date with a gain of 59%.
