Bitcoin regains key level amid renewed investor interest
Bitcoin experienced a notable resurgence on Monday, rising 4% to surpass the $100,000 threshold for the first time since 19 December.
The cryptocurrency market saw more than $900m (€867m) in spot Bitcoin exchange-traded fund (ETF) inflows on the same day, signalling renewed investor interest. Despite this, the sustainability of the rally remains uncertain, as institutional buying volumes were relatively low, according to data from Coinbase. By early Tuesday in the Asian session, Bitcoin had retreated slightly, trading at $101,670 (€97,900) as of 4:30 am CET.
Bitcoin's surge coincided with a significant decline in the US dollar, which retreated sharply on Monday following a Washington Post's report that Trump will soften his tariff stance. The news initially caused the US dollar index to drop as much as over 1%, the biggest intraday decline since 2023, before cutting some losses.
This decline buoyed other assets, including global stock markets and Bitcoin. The euro also posted its largest single-day gain against the dollar in 14 months.
However, the US President-elect denied such a report on his Truth Social, which "incorrectly states that my tariff policy will be pared back", he said. The dollar pared some of its early gains and is expected to continue the uptrend ahead of Trump's inauguration later this month. A strengthening dollar may continue to exert pressure on Bitcoin and other currencies, with Bitcoin likely awaiting a fresh catalyst for its next major move.
Bitcoin peaked at more than $108,000 (€104,000) on 17 December, following a hawkish interest rate cut by the Federal Reserve. The Fed's Dot Plot projections indicated two 25 basis point cuts in 2025, a shift from the earlier forecast of a full-percentage point
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