30s Summary

Bitcoin’s meteoric rise has paused at $90,000, following a $20,000 increase last week. The strength of the US dollar and rising yields on US Treasury notes could slow the currency’s ascent. Bitcoin has surged in value since Trump’s election win, however, if the dollar continues to strengthen, this could lead investors to favour less risky assets. Trump’s controversial policies could also cause inflation, making it harder for the Federal Reserve to cut interest rates next year, impacting Bitcoin’s progress. Traders hope Bitcoin will continue to rise, potentially to $110,000.

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Bitcoin is currently taking a breather at the $90,000 resistance level, which was identified by CoinDesk last week. It’s quite normal for such a pause to happen, especially after a massive $20,000 price increase in just one week. That being said, crypto traders are hoping that Bitcoin will eventually break through towards $110,000.

A factor that could impact Bitcoin’s upward climb is the strength of the US dollar. FX traders are predicting that the dollar will continue to strengthen, which might slow the rise of Bitcoin. As folks are trying to guess the movement of the financial market, there’s always the risk of an attempt to tighten finances, which could weigh heavily on riskier assets like Bitcoin.

Bitcoin did experience a slight hiccup as it encountered the $90,000 barrier, with prices briefly falling to $85,000. But relax, dips are quite common in the world of trading and they are often just a recharging phase for a stronger push towards higher prices.

Another interesting thing to note is that both Bitcoin and the US dollar have surged since Donald Trump’s victory in the election. This leads us to yet another factor that could put a pin in Bitcoin’s ascent: the continued strength of the US dollar. The value the dollar holds in global trade, international debt, and non-bank borrowing means investors might cut back on riskier assets like Bitcoin and stocks if the dollar keeps appreciating.

And then there’s the thing about hardening bond yields. Yields on US Treasury notes are getting stronger, which is putting more weight behind the dollar. Plus, investors are worried about Trump’s policies potentially causing inflation, particularly his plans for mass deportations. This could make it harder for the Federal Reserve to cut interest rates next year.

So as much as Bitcoin traders are rooting for a breakthrough, it seems like there are several factors at play that might just slow down the cryptocurrency’s ascent. Time will tell if Bitcoin can manage to power through these challenges.