Bitcoin broke through the $100,000 mark, driven by the weakening of the US dollar and renewed investor interest, with ETF inflows exceeding $900 million. However, the sustainability of this upward trend is uncertain due to low trading volume and a lack of new catalysts. The decline of the US dollar came after reports of softened tariff policies, but was later denied, raising concerns about a potential dollar recovery that could put pressure on Bitcoin. Bitcoin's early December decline was attributed to profit-taking, low trading volume, and the hawkish stance of the Federal Reserve. Despite recent price gains, trading activity remains below peak levels, casting doubt on the sustainability of the uptrend. However, analysts remain optimistic about Bitcoin's performance in 2025, expecting favorable regulatory measures under the Trump administration to fuel hopes of another major rally. The recent rise in Bitcoin reflects its enduring appeal in macroeconomic changes, such as the weakening of the US dollar, but low trading volumes indicate investor caution. Although ETF inflows and bullish sentiment supported by optimism for the new government have increased, reliance on speculative factors such as policy changes carries risks. To sustain growth, Bitcoin needs stronger institutional support and clearer macroeconomic drivers. In the long run, Trump's suggestion of including Bitcoin in strategic reserves may enhance its credibility, but the current market seems to be facing volatility.
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Bitcoin broke through the $100,000 mark, driven by the weakening of the US dollar and renewed investor interest, with ETF inflows exceeding $900 million. However, the sustainability of this upward trend is uncertain due to low trading volume and a lack of new catalysts. The decline of the US dollar came after reports of softened tariff policies, but was later denied, raising concerns about a potential dollar recovery that could put pressure on Bitcoin.
Bitcoin's early December decline was attributed to profit-taking, low trading volume, and the hawkish stance of the Federal Reserve. Despite recent price gains, trading activity remains below peak levels, casting doubt on the sustainability of the uptrend. However, analysts remain optimistic about Bitcoin's performance in 2025, expecting favorable regulatory measures under the Trump administration to fuel hopes of another major rally.
The recent rise in Bitcoin reflects its enduring appeal in macroeconomic changes, such as the weakening of the US dollar, but low trading volumes indicate investor caution. Although ETF inflows and bullish sentiment supported by optimism for the new government have increased, reliance on speculative factors such as policy changes carries risks. To sustain growth, Bitcoin needs stronger institutional support and clearer macroeconomic drivers. In the long run, Trump's suggestion of including Bitcoin in strategic reserves may enhance its credibility, but the current market seems to be facing volatility.