Bitcoin has surpassed the 120,000 US dollars mark for the first time over the weekend and into Monday night, thus reaching a new all-time high. Specifically, a peak of about 121,000 USD was recorded, representing a strong increase of approximately 28% in the current year.
Factors Behind the Bitcoin Boom
- Technical Indicators: These continue to show bullish momentum with robust buying pressure, indicating potential further price gains. The next possible price target is around 130,000 to 132,000 USD, based on Fibonacci extension levels.
- Political Decisions: The announcement of high tariffs by President Trump on the EU and Mexico, along with anticipated US inflation data, significantly affects the markets and could make Bitcoin more attractive as an inflation hedge.
- Monetary Easing in the US: Interest rate cuts are expected to combat inflation, which tends to lead to a depreciation of the US dollar and supports riskier assets such as Bitcoin.
Thus, Bitcoin remains the market driver in the crypto sector, benefiting from both institutional purchases (e.g., spot ETFs) and macroeconomic conditions that strengthen its perception as a store of value.
Impacts and Future Outlook
Overall, surpassing the 120,000-dollar mark signals a new phase for Bitcoin with potentially significant impacts on trading as well as confidence in cryptocurrencies in general.