Bitcoin saw a slight recovery on Wednesday, climbing back above $96,000 after a recent pullback from record levels. The flagship cryptocurrency was up 5% at $95,886.00, while ether also jumped more than 8% to $3,591.33. The broader crypto market, as measured by the CoinDesk 20 index, gained 5%.
Bitcoin is often seen as a store of value and a digital alternative to gold, and it is known to trade in tandem with the stock market. However, on Wednesday, it decoupled from the tech-heavy Nasdaq Composite, which was down 1%. Other crypto-related stocks like Coinbase, Robinhood, and MicroStrategy also saw gains as bitcoin lifted the sector.
Since the November 5 presidential election, bitcoin has been hitting record highs, up about 38% in that time. It reached as high as $99,849.99 before testing the $90,000 support level this week. Analysts like Alex Thorn from Galaxy Digital believe that the bitcoin bull market still has room to grow, citing increasing institutional and corporate adoption, as well as potential support from the incoming Trump administration.
Katie Stockton from Fairlead Strategies noted that at current levels, bitcoin investors are in uncharted territory in terms of resistance, which is essentially non-existent. Support is seen around $74,000, and bitcoin has a history of sharp run-ups followed by consolidation.
Bitcoin is up 124% for the year and is expected by many to reach the $100,000 milestone before the end of the year. Ether, on the other hand, has seen a 55% gain year-to-date, trailing behind bitcoin's performance. Overall, the cryptocurrency market continues to show signs of strength and potential for further growth.