The post Why Bitcoin Is Going Up Today: Key Drivers Behind the Historic $106k Surge appeared first on Coinpedia Fintech News
Bitcoin (BTC) price surged over 2 percent in the past 24 hours to reach a new all-time high (ATH) of about $106,352 for the first time in 16 years of existence. As a result, the total crypto market cap is only $130 billion shy of hitting $4 trillion for the first time since inception.
Bitcoin dominance continued to gain more ground over the altcoin industry, despite the rising demand for utility altcoins. Since the beginning of December, Bitcoin dominance has surged around 4 percent to hover about 57.38 percent on Monday, December 16, during the early London session.
Bitcoin Price Aims for $120k Next
Bitcoin price has already reached the psychological target of $100k and more traders are long in the short term. According to legendary trader Peter Brandt, Bitcoin price is well positioned to reach $120k soon as it continues to gain more ground against the Gold market.
From a technical analysis standpoint, Bitcoin price has broken out of an ascending triangle pattern in the daily time frame. Although the bulls are in control, a potential retest of the bullish breakout could see Bitcoin price tease below $100k to potentially flash the long traders.
BTC skyrockets to $106k ATH! What’s next for Bitcoin? Read Bitcoin Price Prediction and uncover the path to $120k and beyond!
Mixed Reactions from Whale Investors
As the Bitcoin price rallied above $101k again, whale activities remained relatively high in the past few days. According to market data from Coinglass, the supply of Bitcoin on centralized exchanges declined by over 37k in the past seven days to hover about 2.25 million at the time of this writing.
The US spot BTC ETFs accounted for huge demand last week, with a net cash inflow of about $2.17 billion, led by BlackRock’s IBIT and Fidelity’s FBTC.
Meanwhile, on-chain data analysis by Glassnode reveals that long-term holders have accelerated the overall Bitcoin sales, signaling the cycle top is close. On the other hand, Bitcoin addresses with at least 100 coins increased by 1,582 in the past 9 weeks.
Also Read : Ethereum Price Surges After $17.5M Stake, Institutional Accumulation? ,
Bigger Picture
The mainstream adoption of Bitcoin around the world will now be fueled by nation-states alongside institutional investors ahead. US President-elect Donald Trump reminded investors that his administration will do something great with crypto to remain a leader in the sector.
With the rising talks of strategic Bitcoin reserves at the state level, led by Texas, the Federal government will eventually fall in line after next year’s inauguration. Moreover, the US is fast growing into bankruptcy, with over $36 trillion in national debt.
Other countries will follow the United States in adopting a strategic Bitcoin reserve.
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