Bitcoin’s rally stalls after nearing the historic $US100,000 level

Bitcoin steadied after a rally fizzled just shy of the historic level, as traders assess whether optimism stemming from President-elect Donald Trump’s support for crypto is becoming stretched. The digital asset fell as low as $US95,776 ($147,101) on Sunday after coming within $US300 of the six-figure milestone on Friday. It rebounded to change hands at $US98,310 as of 6:45 a.m. Monday in London, as Trump’s pick of hedge fund executive Scott Bessent for Treasury secretary helped sentiment in global markets. Investors are worried Bitcoin “will have to take a breather now that it has basically tested the $US100,000 level,” said Matt Maley, chief market strategist at Miller Tabak + Co, adding that bullishness around Bitcoin “is getting extreme.” Trump’s incoming US administration is viewed as a crypto tailwind across Wall Street and beyond. The overall value of the digital-asset market has surged about $US1 trillion since the Republican’s victory on November 5. Trump has promised friendlier regulations and pledged to set up a national Bitcoin stockpile, though the timeline for implementation and the feasibility of the Bitcoin reserve remain open questions. “I’m seeing an increasing skew to the sell side as we near the $US100,000 mark,” said David Lawant, head of research at crypto prime broker FalconX. “This suggests we may experience consolidation around this level in the near term before a sustained breakthrough above it.” Traders had seized on the US crypto outlook to push Bitcoin to the verge of $US100,000, a symbolic level that for crypto supporters repudiates skeptics who see little intrinsic value in digital assets. The latest developments included a Bloomberg News report that Cantor Fitzgerald is in talks with Tether Holdings about receiving support from the stablecoin issuer for Cantor’s planned lending program for clients who put up Bitcoin as collateral. Cantor’s Chief Executive Officer Howard Lutnick is co-chair of Trump’s transition team and the president-elect’s pick to run the Commerce Department. The transition team has also held discussions over whether to create the first-ever White House post dedicated to digital-asset policy. Cash has poured into US exchange-traded funds investing directly in Bitcoin since Trump’s win, and the products have now amassed $US107 billion in assets. “Bitcoin was extremely overbought since the election, it was bound to stall out,” said Stephane Ouellette, chief executive officer at crypto investment firm FRNT Financial Inc. “That said, this is barely a pullback, we’re just back at levels from mid-last week.” Bloomberg.