Bitcoin Briefly Surpassed the $90,000 Mark Before Retreating on Wednesday

Bitcoin briefly surpassed the $90,000 (€85,000) mark before retreating on Wednesday, aligning with a broader sell-off in global equity markets.

Bitcoin briefly surpassed the $90,000 (€85,000) mark on Wednesday before retreating amid a broader sell-off in global equity markets.

The surge follows a 33% increase in Bitcoin’s value since Donald Trump’s victory in the U.S. presidential election on November 5. However, as equity markets fell ahead of U.S. inflation data, Bitcoin’s price dipped below $87,000 (€82,000).

Bitcoin’s recent rally has been driven by speculation, with some analysts predicting the cryptocurrency could reach $100,000 (€94,000) by year-end.

The market remains highly volatile, with large trades by “whales” (major holders) capable of moving prices significantly, especially during periods of low trading volume.

This volatility has led some analysts to express concern over potential short-term liquidation risks.

The broader market sell-off, including significant declines in Asian stock indices, comes ahead of the expected U.S. Consumer Price Index (CPI) data, which could influence the Federal Reserve’s stance on interest rates.

A higher-than-expected CPI might slow rate cuts, putting further downward pressure on risk assets like Bitcoin.

Despite the recent dip, Bitcoin price remains significantly higher than before Trump’s election win.

The rally has been driven not only by the Trump trade but also by increased institutional adoption, especially after the U.S. Securities and Exchange Commission approved a spot Bitcoin ETF earlier this year.

While some analysts, like eToro’s Josh Gilbert, believe Bitcoin’s rally could be just beginning, others caution that ongoing volatility could keep its price from reaching new highs in the short term.

Gilbert expects Bitcoin to potentially hit six figures within a few months, driven by both market momentum and growing acceptance of the digital asset.