Bitcoin Surpasses $106,000, Sets New Record High
On Monday (December 16), the price of Bitcoin (BitfinexUSD) rose by 3.6% to reach $106,569.4, setting a new all-time high. From approximately $40,000 at the beginning of the year, Bitcoin has increased by over 170% this year. By last Sunday, Bitcoin had risen for seven consecutive weeks, marking the longest streak of gains since 2021, demonstrating strong demand for cryptocurrencies in the market.
Liquidation Wave Sweeps Market as ETF Inflows Hit Record
While Bitcoin prices soared, market volatility led to numerous liquidation events. Stats show that in the last 24 hours, there were 94,200 liquidations globally, totaling $309 million. Meanwhile, U.S. Bitcoin spot ETFs recorded a net inflow of $2.167 billion last week, indicating growing interest from institutional investors in Bitcoin. This trend provides strong financial support for Bitcoin.
Trump Policies Bolster Confidence in Crypto Market
The latest rise in Bitcoin prices is also closely related to the policy stance of U.S. President-elect Trump. Reports suggest Trump favors a regulatory framework friendly to cryptocurrencies and supports a proposal for a national Bitcoin reserve. This contrasts sharply with the previous Biden administration's strict regulations on the digital asset industry.
Additionally, news of Trump planning to promote a Bitcoin strategic reserve fund sparked a positive market reaction, leading to a surge in cryptocurrency prices. The market believes this policy inclination will offer more growth space for Bitcoin and other digital assets, further solidifying its position in global asset allocation.
Global Liquidity Boosts Crypto Market
Recently, the shift in monetary policy by major central banks has become a key factor supporting the cryptocurrency market. With the expectation of increased global liquidity, Bitcoin and other digital assets are viewed as preferred options for hedging against inflation and enhancing portfolio returns. Analysts believe this trend will continue to support Bitcoin prices in the coming months.
Bitcoin Shows Strong Momentum
The continuous rise of Bitcoin indicates that confidence in cryptocurrencies is still growing. With policy support, improved liquidity, and institutional inflows, Bitcoin is likely to keep ascending. However, with increased market volatility, investors should be cautious of potential risks. Whether Bitcoin can maintain this growth momentum depends on changes in policy direction and market sentiment.
