Another record high! BTC breaks through the $106,000 mark, analysts warn of 'correction risk'

BTC this morning (16) broke through the $106,000 mark, rewriting a new historical high, continuing the momentum since the US President-elect Donald Trump voiced support for Cryptocurrency. Since the US election, BTC has soared by more than 55%, and has been on the rise for 7 consecutive weeks, setting the longest weekly consecutive rise record since 2021.

With the market's high expectations for the proposed 'national BTC reserve' by Trump, and the optimistic outlook supported by the Fed's interest rate cut this week, BTC soared to $106,352 earlier today, breaking the previous high record set on December 5th. It has since fallen to $105,038 and has risen 3% in the past 24 hours.

The rising trend of Ethereum is also not to be underestimated, reaching a maximum of $4,012.57 today, and at the time of writing, it is $3,983, with a 2.5% increase in the past 24 hours.

Trump's friendly attitude towards Cryptocurrency has completely reversed the high-pressure regulatory atmosphere of the Biden administration and has become an important driving force for the rise of BTC. He not only proposed the establishment of a 'National BTC Strategic Reserve', but also called for the United States to become a leader in the global Cryptocurrency industry, reigniting market expectations.

Some analysts believe that this policy direction is undoubtedly a catalyst for BTC to break through sky-high prices, and it has also driven the cryptocurrency market into a new wave of frenzy.

"Investors are betting that the Trump administration will bring a more friendly regulatory environment," said Aya Kantorovich, co-founder of investment platform August, adding that this confidence is also reflected in the strong demand for Cryptocurrency ETFs. Since the US election in November, ETFs directly investing in BTC have attracted over $12.2 billion in capital inflows."

BTC has risen for 7 consecutive weeks, setting the longest weekly gain record since 2021. Since the US election, BTC has surged by over 55%, and the increase in the past month has also exceeded 14%. The market sentiment index 'Fear and Greed Index' has soared to 83 points, entering the 'extreme greed' zone, indicating that investors are extremely confident about the future market.

However, Tony Sycamore, market analyst at IG Australia, warns that the upward trend of BTC may face correction risks, especially when the rate of increase slows down, which may mean an increase in short-term pullback pressure.

The Federal Reserve (Fed) will hold an interest rate policy meeting on December 18th. It is widely expected that the interest rate will be cut by 1 basis point (0.25 percentage points). If this expectation comes true, it will further drive funds towards the high-yielding cryptocurrency market.

BTC hits a new high of $106,000, analysts warn of potential correction risks. This article was first published on Blocktempo.