Bitcoin’s recent price surge has brought the cryptocurrency tantalizingly close to the symbolic $100,000 milestone, CNBC reports.
However, opinions remain divided on whether it can maintain its upward momentum or if a pullback is imminent.
European markets closed higher on Thursday, with the pan-European Stoxx 600 gaining 0.46%, while US markets were closed for the Thanksgiving holiday. Meanwhile, global semiconductor stocks, such as ASML and Tokyo Electron, rallied on news that the US may impose less stringent export restrictions.
In the currency markets, the Russian ruble tumbled to its lowest level since March 2022, prompting intervention from Russia’s central bank to stabilize the currency. China announced tighter controls on tungsten exports, highlighting ongoing geopolitical factors influencing global markets.
Bitcoin’s price peaked at just under $99,000 this week before retreating to around $95,600 as of Thursday. The surge has fueled speculation about whether it can break through the $100,000 barrier. Andre Dragosch, head of research for Europe at Bitwise, noted that long-term holders have begun selling their holdings, adding to bitcoin’s supply and potentially capping its recent gains.
Despite this, the recent launch of options on spot bitcoin exchange-traded funds (ETFs) has attracted significant interest. These financial instruments allow investors to speculate on bitcoin’s price with less upfront capital, which may have contributed to the current rally.
Strategists remain split on bitcoin’s potential to reach six figures. David Morrison, senior market analyst at Trade Nation, described the $100,000 level as a “high hurdle” and a potential barrier to further gains. Similarly, George Milling-Stanley, chief gold strategist at State Street Global Advisors, cautioned that bitcoin’s appeal is largely speculative, driven by short-term capital gains rather than intrinsic value.
On the other hand, crypto enthusiasts like Galaxy Digital CEO Mike Novogratz acknowledge the market’s volatility but remain optimistic. Novogratz warned of a potential correction due to the highly leveraged positions in the crypto market but suggested that such dips are temporary. He believes bitcoin’s long-term trajectory could surpass $100,000, especially if favorable regulatory developments materialize.
While some analysts view the current rally as a speculative bubble, others see it as a natural phase in bitcoin’s broader adoption. As the cryptocurrency continues to attract mainstream attention, its future remains uncertain, with the $100,000 mark serving as both a psychological barrier and a potential stepping stone to further growth.
