Bitcoin Breaks $100K: What’s Fueling This Unprecedented Surge?

Summary:

Bitcoin surpasses $100,000 for the first time, driven by market optimism.
Dow Jones and S&P 500 hit record highs, reflecting strong investor sentiment.
Salesforce shares soar 11% on robust quarterly results.
Federal Reserve Chair Powell indicates a healthy economy with potential interest rate cuts.
Bitcoin's breakout signals a bullish target of $129,930.

Market Overview

On December 4, 2024, stocks reached new highs, driven by significant gains in technology shares. In a remarkable move, Bitcoin surpassed $100,000 for the first time, reflecting a robust post-election rally that seems to have no end in sight.

Stock Market Highlights

The Dow Jones Industrial Average and S&P 500 increased by 0.7% and 0.6%, respectively, while the Nasdaq Composite surged 1.3%, setting record highs.
Stocks have started the month on a strong note, building on their biggest gains of the year from November, as investor optimism grows regarding the incoming Trump administration's pro-growth policies.

Bitcoin's Surge

Bitcoin's price soared to approximately $103,300 from a low of $95,000 earlier that day, following expectations that a crypto-friendly Congress will enact supportive measures for cryptocurrency. This bullish trend was reinforced by the news of Trump appointing Paul Atkins as head of the Securities and Exchange Commission (SEC), a move viewed positively by the crypto community.

Key Market Movers

Salesforce (CRM) shares jumped 11% after reporting better-than-expected quarterly results and a positive outlook.
Marvell Technology (MRVL) shares skyrocketed 23% following a strong earnings report.
Major technology stocks, including Nvidia, Apple, Microsoft, and Amazon, also saw gains.

Federal Reserve Insights

Investors are closely watching remarks from Federal Reserve Chair Powell, who indicated that the U.S. economy remains healthy, with low unemployment and positive inflation trends. The Fed's final rate-policy meeting of the year is approaching, with expectations for a quarter-point cut in interest rates.

Commodities Update

Gold futures rose slightly to $2,675 an ounce.
Crude oil futures fell by about 1.5%.

Bitcoin's Technical Analysis

Bitcoin has broken out above a newly formed pennant, indicating a continuation of its upward trajectory. Analysts suggest a bullish target of $129,930, while key support levels to watch are around $90,500, $80,500, and $70,000.

Bitcoin Chart
Source: TradingView.com.