Key Highlights:
- Bitcoin peaked at $102,500 following comments from President-elect Donald Trump, but a downturn in the bond market affected overall risk assets.
- The European Central Bank reduced interest rates by 25 basis points, signaling potential further cuts.
- Most altcoins in the CoinDesk 20 Index surpassed Bitcoin's gains, particularly Avalanche (AVAX) appreciating by 9% and Chainlink (LINK) by 13%.
Earlier on Thursday, Bitcoin was poised to attain new heights but suffered a setback as it dropped to $99,800 by late afternoon.
Donald Trump stated, "we're going to do something great with crypto" while ringing the opening bell at the New York Stock Exchange, expressing his commitment to nurturing digital assets in the U.S. In parallel, the European Central Bank reduced its benchmark rates, hinting at additional cuts.
This was a strong rally that ultimately failed to hold its momentum, with Bitcoin prices quickly retracting.
The broader financial markets also faced declines, notably with the Nasdaq losing 0.7% and the S&P 500 dipping by 0.5%. Gold prices dropped by 1.8% to $2,706 per ounce.
Additionally, Ethereum (ETH) also showed strength, maintaining a 1.5% gain after experiencing a slight retrace, and forecasts suggest it may reach new all-time highs.
