Bitcoin’s impressive rally stumbled over the weekend, falling short of reaching the historic $100,000 mark, Bloomberg reports.
After climbing to within $300 of the milestone on Friday, the cryptocurrency slipped to $95,776 on Sunday and struggled to regain momentum, hovering near $97,000 in early Monday trading.
The retreat has raised questions about whether Bitcoin’s recent surge, spurred by optimism over President-elect Donald Trump’s pro-crypto policies, has reached its limit.
Market analysts suggest that Bitcoin’s upward momentum may be stalling as the euphoria surrounding Trump’s victory begins to cool. The president-elect has signaled support for cryptocurrencies, promising favorable regulations and proposing the creation of a national Bitcoin reserve. These announcements fueled a trillion-dollar surge in the overall digital-asset market since Trump’s win earlier this month.
“Investors are worried it will have to take a breather now that it has basically tested the $100,000 level… Bullishness surrounding Bitcoin is getting extreme,” said Matt Maley, chief market strategist at Miller Tabak + Co.
Bitcoin’s symbolic approach to the six-figure mark has drawn increased scrutiny from traders and analysts alike. David Lawant, head of research at FalconX, observed growing selling pressure as Bitcoin neared $100,000.
“This suggests we may experience consolidation around this level in the near term before a sustained breakthrough above it,” Lawant said.
The enthusiasm around Bitcoin ETFs has also contributed to the rally. Since their launch in January, Bitcoin-focused exchange-traded funds have attracted $107 billion in assets, making them one of the most successful fund categories in history.
Trump’s administration is widely expected to be favorable toward cryptocurrencies, with discussions underway about creating a White House position dedicated to digital-asset policy. Trump’s Commerce Secretary pick, Howard Lutnick, is CEO of Cantor Fitzgerald LP, which has reportedly engaged in talks with Tether Holdings Ltd. about a multibillion-dollar lending program using Bitcoin as collateral.
While Trump’s agenda has fueled optimism, the feasibility of some initiatives, such as the national Bitcoin stockpile, remains uncertain.
Despite the recent pullback, some experts view the decline as a natural pause after a period of intense buying. Stephane Ouellette, CEO of FRNT Financial, downplayed concerns, saying:
“Bitcoin was extremely overbought since the election, it was bound to stall out. That said, this is barely a pullback—we’re just back at levels from mid-last week.”
