Crypto Market Jumps Following Bitcoin Rally to $100,000
The crypto market jumped on Wednesday, with the price of bitcoin rising 5% to $101,413.74, according to Coin Metrics. Ether also rose 5%, but has not reclaimed its key resistance at $4,000. The CoinDesk 20 index, which measures broader cryptocurrency performance, climbed more than 6%.
Crypto stocks Coinbase and MicroStrategy advanced 3% and 9%, respectively. While all but MicroStrategy are still in the red for the week, investors remain optimistic about the future of cryptocurrencies.
The November consumer price index came in as expected, with a 0.3% rise from October and a 2.7% increase from a year ago. This has led investors to bet that the Federal Reserve will cut interest rates again at its December meeting.
Investors expect to see a continued chop for bitcoin around the $100,000 level, but many remain optimistic that its price could about double in the year ahead. Bernstein is forecasting a cycle high of $200,000 in 2025, while Fundstrat’s Tom Lee believes bitcoin has “upside to $250,000” next year.
