Investing.com– Bitcoin retreated slightly from near-record highs on Friday as optimism over a Donald Trump presidency cooled, while broader risk appetite was hit by increased uncertainty over U.S. interest rates. .
The world's largest cryptocurrency was still enjoying stellar gains during the week as it hit all-time highs above $90,000 on bets that US regulations will favor cryptocurrencies under Trump.
fell 0.6% to $90,233.0 at 09:02 ET (14:02 GMT), after hitting an all-time high of $93,226.6 earlier in the week. Markets were now watching for the crypto to surpass $100,000, which is considered a key level.
Bitcoin prepares for best week since February
Bitcoin was expected to add around 17% this week, its best weekly performance since late February. The currency was also headed for a third consecutive week of gains.
Bitcoin's gains were primarily driven by optimism about a Trump presidency, after he won the 2024 presidential election. Institutional inflows into cryptocurrency exchange-traded funds were seen as a major driver of recent price gains.
Trump has promised to enact more cryptocurrency-friendly regulation and has also raised the possibility of a national Bitcoin reserve.
But optimism about Trump now appeared to have cooled, especially as traders now hoped for more clarity on what his policies will entail.
Trump is also expected to enact expansionary policies that could boost inflation and keep interest rates relatively high for years to come.
Bitcoin Could Hit $180,000 This Cycle, Says Head of Crypto Research at VanEck
VanEck head of digital asset research Matthew Sigel said Bitcoin's current price rally could extend into 2025. Speaking to CNBC, Sigel compared the recent surge in Bitcoin's value, which followed Donald's presidential nomination Trump, with the rebound seen after the election of Joe Biden in 2020.
He estimated that the price of Bitcoin could double, reaching $180,000 during this bullish phase.
“As we expected, Bitcoin experienced this high volatility after the election. “We are now in blue sky territory, with no technical resistance, and we believe we are likely to hit repeat all-time highs over the next two quarters,” Sigel said in an appearance on CNBC’s Squawk Box. The first two financial quarters of 2025 end on March 31 and June 30, respectively.
Sigel also highlighted similarities with the market dynamics of four years ago.
“The same patterns occurred four years ago,” he explained. “Between the election and the end of 2020, Bitcoin doubled. There were about six 10% corrections, so it won't be a straight line, but we are up 30% so far and a number of indicators we continue to flash green for this rally to continue.”
Earlier this month, VanEck CEO Jan Van Eck commented that the price of Bitcoin could rise to $300,000.
Rate nervousness weighs after Powell's comments and inflation data
The recent cryptocurrency rally was stalled by increased uncertainty over US interest rates, especially after a series of strong consumer and producer inflation readings in October.
The readings were followed by comments from Federal Reserve Chair Jerome Powell, who said the resilience of the U.S. economy gave the central bank more time to consider further interest rate cuts.
Traders were seen reducing their bets on a rate cut in December following Powell's comments, which also led to losses in broader risk assets. Wall Street retreated from all-time highs in the last two sessions.
Bond and Treasury yields rose sharply this week, putting further pressure on risk assets.
Crypto Price Today: Doge Headed For Stellar Week; ADA, XRP peak
Broader cryptocurrency prices retreated following Bitcoin, but were mostly headed for strong gains this week. The world's No. 2 cryptocurrency fell more than 2% to $3,101.94.
had a strong performance this week, up 65%, and was on track for its best week since October 2022. Social media rumors surrounding the token increased after Trump announced the formation of the Department of Government Efficiency (DOGE). ), which will be directed by Elon Musk. and Vivek Ramaswamy.
and moved in a flat range on Friday, but all posted strong gains over the past week. Meanwhile, there were sharp increases of 23% and 17%, respectively.
Ambar Warrick contributed to this report.
