Bitcoin surged past $96,000 on Wednesday, rebounding from recent losses and reigniting investor anticipation for a potential climb to $100,000. The cryptocurrency rose nearly 6% to $96,676.70, according to Coin Metrics, while Ethereum also posted significant gains, jumping more than 9% to $3,636.46.
The broader crypto market, tracked by the CoinDesk 20 index, advanced 7%, signaling renewed momentum. Bitcoin, often seen as a digital alternative to gold, has been trading largely in tandem with traditional markets but broke away from Wall Street trends on Wednesday. While the Nasdaq Composite slipped 0.6%, and the Dow Jones and S&P 500 posted losses, bitcoin decoupled to chart its own recovery.
Crypto Stocks Ride the Wave
Shares of cryptocurrency-related companies surged alongside bitcoin’s rally. Coinbase rose more than 6%, Robinhood gained 3%, and MicroStrategy, a prominent bitcoin proxy, jumped 9%.
A Post-Election Bitcoin Boom
Bitcoin has climbed approximately 38% since the Nov. 5 presidential election, reaching as high as $99,849.99 last Friday before pulling back earlier this week. Analysts suggest the cryptocurrency’s bullish trajectory is supported by increased institutional and corporate adoption, along with speculation that the incoming Trump administration will adopt a pro-crypto stance.
Alex Thorn, head of research at Galaxy Digital, stated in a Wednesday report, “The bitcoin bull market has legs. While short-term corrections are normal, a combination of strong positioning, growing institutional adoption, and a supportive policy environment points to higher prices in the near and medium term.”
Fairlead Strategies’ Katie Stockton added that bitcoin investors are in “uncharted territory” with no clear resistance levels. She emphasized the cryptocurrency’s tendency to “stair-step” with sharp runups followed by consolidation, urging investors to account for its volatility and long-term growth potential.
Outlook for the Year-End
Bitcoin is up 126% year-to-date and is widely expected to break the $100,000 threshold by the end of the year. Ethereum, though trailing with a 59% annual gain, has been an outperformer in recent weeks.
