Rachael Lucas, cryptocurrency analyst at BTC Markets, said: “Reaching a new all-time high is significant for Bitcoin and marks its development into a more mature asset class, reflecting Bitcoin’s transformation from a retail-driven asset to one driven by institutional demand, ETFs and corporate bond-backed assets, which enhances its legitimacy.”
Analysts say there are several factors contributing to Bitcoin's move above $106,000, including U.S. President-elect Trump's recent statement that he wants to build a strategic Bitcoin reserve and do "some great things" with the cryptocurrency, as well as the inclusion of MicroStrategy The Nasdaq 100 and Riot recently announced the purchase of 5,117 BTC.
Presto Research analyst Min Jung said: "The upcoming FOMC meeting this Wednesday will provide important insights into the outlook for potential interest rate cuts by the Federal Reserve." Jung added that cryptocurrency prices are expected to be affected by announcements related to Trump's inauguration in January next year or significant impact on progress. (The Block)