Cryptocurrency markets soared Wednesday after a two-day break after Bitcoin soared to $100,000 for the first time in history last week.
The price of the leading cryptocurrency was last up 4.8% at $101,052.72, according to Coin Metrics. Ether also rose 4%, but has yet to regain its key resistance at $4,000. The CoinDesk 20 Index, which measures the performance of broader cryptocurrencies, rose more than 7%.
Cryptocurrency stocks Coinbase and MicroStrategy rose 5% and 7%, respectively.
All companies except MicroStrategy remain in the red this week.
Cryptocurrencies further accelerated as the consumer price index in November was in line with expectations, increasing by 0.3% compared to October and 2.7% compared to the previous year. Investors are betting that this reading will pave the way for the Federal Reserve to cut rates again at next week's December meeting.
Investors expect Bitcoin's price appreciation to continue around $100,000, but remain optimistic that the price could roughly double over the next year. Bernstein expects a cycle high of $200,000 in 2025. Fundstrat's Tom Lee said in his 2025 outlook released Wednesday that Bitcoin “could rise to $250,000” next year.
Bitcoin's current record is $103,844.05.
