Bitcoin Rebounds: Gains Continue Following Year-End Decline

Image Credit: Reuters

Bitcoin extended its rally for a seventh straight session on Monday, rebounding from a year-end decline as investors awaited clarity on U.S. regulatory policies ahead of President-elect Donald Trump’s inauguration later this month.

As of 01:35 ET (06:35 GMT), Bitcoin rose 1.1% to $99,513.7, marking a 6% gain over the past week. This recovery follows a December 2024 peak of $108,244.9, driven by increased institutional interest and speculation about potential strategic reserves under the incoming administration.

However, a sharp decline occurred in the final weeks of 2024 as profit-taking and the Federal Reserve’s hawkish interest rate stance raised liquidity concerns.

Analysts remain optimistic about Bitcoin's trajectory, with H.C. Wainwright forecasting a potential rise to $225,000 by the end of 2025, supported by historical trends, regulatory developments, and growing institutional adoption. Yet, some caution that Bitcoin's price could fluctuate significantly, ranging between $77,000 and $125,000 in early 2025, depending on Trump administration policies.

Elon Musk's 'X Money' Fuels Crypto Speculation

Elon Musk’s vision for X (formerly Twitter) is set to reshape digital payments with the introduction of "X Money" in 2025. Last week, X CEO Linda Yaccarino confirmed the platform’s payment integration plans, encouraging users to "buckle up" for transformative updates.

This announcement has fueled speculation about the inclusion of cryptocurrencies, including Bitcoin and stablecoins. Stablecoins, designed to provide faster and more cost-effective transactions, could be pivotal in X Money’s ecosystem. Recent associations between Musk's SpaceX and Tether's USDT stablecoin have further heightened intrigue, aligning with Musk’s history of endorsing digital currencies.

Broader Crypto Market Trends

Bitcoin’s performance continues to influence the broader cryptocurrency market.

• Ethereum gained 0.8%, trading at $3,669.04.
• XRP rose 0.3% to $2.4130.
• Solana slipped 0.9%, while Polygon edged up 0.4%.
• Cardano dipped 0.3%, and Dogecoin fell 1%.

Despite modest gains for most altcoins, the market remains under pressure amid mixed sentiment.

 

 

 

 

 

 

Paraphrasing text from "Investing.com" all rights reserved by the original author.