Bitcoin (BTC) has risen by 1.0% to $103,940
this week, retreating from a new all-time high of $108,344 reached on Monday.
The surge in BTC prices followed a meeting between U.S. President-elect Donald Trump
and Crypto.com CEO Kris Marszalek at Trump’s Mar-a-Lago residence. While no
details of the discussion were disclosed, Crypto.com dropped its lawsuit
against the U.S. Securities and Exchange Commission (SEC) the same day. Trump
reiterated his intention to establish a U.S. Bitcoin strategic reserve, a
statement that became the focal point of market attention.
The announcement sparked a sharp rally,
pushing BTC to its record high, but the subsequent pullback to $103,060
highlighted market weakness, suggesting that the rally lacks sustained momentum
despite Trump’s bullish narrative.
Institutional investors appear cautious. Last
week, Bitcoin-focused funds such as IBIT (BlackRock), FBTC (Fidelity), and GBTC
(Grayscale) reported combined net inflows of $640.2 million, down from $885.3
million the week before and significantly lower than the $2.29 billion peak
seen in prior weeks. While early data this week shows inflows of $347.2
million, the overall trend suggests large investors remain hesitant to support BTC’s
rally above $100,000. Retail investors, however, are eager for Bitcoin to push
higher, underscoring a divide in market sentiment.
The Trump-driven rally is having broader
implications, with luxury brands adapting to the growing presence of cryptocurrencies.
French luxury department store Printemps has announced a partnership with
Binance and Lyzi, enabling customers to pay for high-end fashion, beauty, and
lifestyle products with cryptocurrencies. Major brands such as Hublot, Tag
Heuer, Gucci, and Balenciaga are also integrating crypto payments, converting
them to fiat currency immediately after transactions to mitigate volatility
risks.
Meanwhile, the NFT market is showing signs of
instability. Pudgy Penguins collectibles have plunged by 55.5% to 16 ETH over a
few days as buyers rushed to offload their assets following the PENGU token
airdrop on December 17. This rapid sell-off highlights shaky sentiment across
the broader crypto market.