Why is Bitcoin Price Up Today? What Next for BTC?

Bitcoin has finally reached and crossed the $100k mark. After years of speculating about the possibility of this milestone, the flagship cryptocurrency smashed the price level and established a new all-time high at $103,600.

Consequently, BTC’s market valuation now stands at $2.03 trillion, taking up about 60% of the entire crypto market cap of $3.69 trillion. But, why did the Bitcoin price surge today? Let us dissect this.

Reasons For Bitcoin’s $100K Surge

The major factor behind the Bitcoin $100k spike is the appointment of a new SEC chairman by President-elect, Donald Trump.

Yesterday, Trump selected Paul Atkins, a former SEC commissioner, to take over the mantle of leading the Securities and Exchange Commission. This comes following current chairman, Gary Gensler’s resignation announcement last week.

Gensler had informed the public that he would step down from office on January 20, 2025, the same day as Trump’s inauguration. His resignation leaves a gap that will now be filled by Atkins.

Recall that during the election campaigns, Trump had promised to remove Gensler from office, citing his stringent policies that have stifled the growth of the crypto sector in the U.S.

Trump promised to make his administration a pro-crypto one, starting with replacing Gensler with a crypto advocate who would help him make America the “Bitcoin capital of the world.”

His choice in Atkins quickly resonated with the crypto community, restoring hope to its worried members. Key industry leaders have also endorsed Trump’s choice, pointing out that Atkins is the right man for the job.

What Next For Bitcoin (BTC)?

Following the $100k breach, investors are curious about Bitcoin’s next target. The crypto fear and greed index, a metric that measures investors’ sentiment, flashed ’84’ points this morning, a six-point increase from yesterday’s ’78.’

This level indicates “extreme greed,” an excessively bullish sentiment among investors which means that Bitcoin still has room for major growth.

Right now, there is no moving average (MA) in this area for resistance, so Bitcoin has to establish support at $100k for it to continue its upward trajectory.

Bitcoin’s relative strength index (RSI) is currently at 76, indicating that the bulls are getting ready to take over the market. However, it is important to note that Bitcoin (BTC) will enter the overbought zone soon, hence, we might witness a cool-off from the rally.

Ultimately, Bitcoin’s one-day trading volume skyrocketed by 82% in the last 24 hours to reach $126.3 billion.