Bitcoin Nears $100,000 in Surprising Surge
New Year, New Hope for Bitcoin. After several months of stagnation, Bitcoin is back on the rise. On Wednesday, the native cryptocurrency surpassed $97,000 for the first time in two months and is up more than 6% in the past week.
Bitcoin's surge came after Federal Reserve Chairman Jerome Powell issued an extraordinary statement accusing President Donald Trump's administration of directing a baseless criminal investigation into it to intimidate the institution. Meanwhile, the price of gold and other precious metals surged as investors turned to safe-haven assets.
In addition to uncertainty about the Fed's independence, the latest inflation figures appear to be driving Bitcoin's recent surge.
"The global macro backdrop is supportive, as the CPI showed a lower reading on Tuesday, amid general concerns about the Fed's independence after Powell's speech, which put pressure on the dollar, which is generally negatively correlated with Bitcoin," said Russell Thompson, chief investment officer at Hilbert Group.
Smaller cryptocurrencies like Ethereum and Solana have also seen recent gains. Ethereum rose more than 4% in the past week to around $3,338, and Solana rose more than 3% during that period to its current price of around $144.
Overall, 2025 was a disappointing year for Bitcoin. Despite more favorable policies from the Trump administration, most notably the Genius Act signed in July, the price of the native cryptocurrency fell more than 6% throughout the year. This contrasts sharply with the S&P 500, which grew about 17% during the period.
In early October, Bitcoin reached an all-time high of over $126,000, but the final three months of 2025 erased those gains and more. The native cryptocurrency plummeted to $84,000 by the end of November, a drop of about 33% from its high. Much of this decline occurred after the so-called "October flash crash," in which traders lost $19 billion in assets.
While the last quarter of 2025 was a period Bitcoin would like to forget, its price shows a promising start to 2026. (asd)
Source: Newsmaker.id
