Bitcoin hits $100,000 for the first time, bolstered by inflation data and optimistic market forecasts.
Bitcoin Reaches Historic Milestone
Bitcoin climbed 5% on Wednesday, surpassing the $100,000 mark, with its price at $101,413.74, according to Coin Metrics. The cryptocurrency reached a record high of $103,844.05 last week, marking a significant achievement for the digital asset.
Broader Crypto Market Gains
Ether also saw a 5% increase but remained below its key $4,000 resistance level. The CoinDesk 20 index, which tracks broader crypto performance, rose over 6%. Crypto-related stocks like Coinbase and MicroStrategy experienced gains of 3% and 9%, respectively, although many remain in the red for the week.
Inflation Data Fuels Optimism
The November Consumer Price Index (CPI) reported a 0.3% rise from October and a 2.7% year-over-year increase, aligning with market expectations. This data has strengthened speculation about a Federal Reserve interest rate cut at the upcoming December meeting, providing an additional boost to cryptocurrency prices.
Market Outlook: Bullish Projections
Analysts predict continued volatility around the $100,000 level but remain optimistic about Bitcoin’s growth. Bernstein forecasts a high of $200,000 in 2025, while Fundstrat’s Tom Lee projects Bitcoin could hit $250,000 as early as next year.
Crypto’s Momentum Heading into 2025
With inflation data supporting market confidence and institutional adoption increasing, cryptocurrencies are poised for significant growth. Bitcoin’s milestone reinforces its status as a key player in the financial ecosystem.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
