The cryptocurrency market has slowed down after its impressive surge that started last week following the U.S. elections. Investors believe the upward trend will soon continue.
On Tuesday, Bitcoin saw a slight dip, falling about 1% to a price of $87,440.88, as reported by Coin Metrics. On Monday, it had experienced a significant rise of over 10%, reaching nearly $89,623.00. Many investors are optimistic that Bitcoin could break through to $100,000 later this year.
Since November 5, when Bitcoin returned to new heights, its value has increased more than 26%. Meanwhile, Ether experienced a 3% drop on Tuesday, even after enjoying a remarkable 33% gain in the previous week.
Analyst Mike Colonnese from H.C. Wainwright discussed Bitcoin’s current state, noting it seems to be in a phase of price discovery after surpassing its previous highs. “Positive sentiment is likely to persist,” Colonnese expressed, forecasting that Bitcoin could potentially reach six figures by year’s end.
After a remarkable week, the cryptocurrency market hit a pause, including a notable decrease in Shiba Inu, which dropped 4% after having soared by 57% recently. Dogecoin, however, remained a standout performer, having gained over 135% since November 5, thanks to its association with Elon Musk, who played a crucial role in the recent election.
In the stock market, Coinbase and MicroStrategy both fell by around 6% in premarket trading. Despite this, Coinbase had a strong performance in regular trading on Monday, rising 19% to above $300 for the first time since 2021.
Traders and analysts believe that the recent surge is just the beginning. “There seems to be a clear gap between the previous Bitcoin all-time highs around $72,000 and $100,000,” said analyst Matt Hougan. He emphasized that while there could be dips, the overall sentiment is optimistic, marking the start of a new cycle in the crypto market.
