Bitcoin hits $100k, OPEC+ delay output hike :: InvestMacro

• Bitcoin smashes through $100k

• “OG” crypto boasts $2 trillion market cap, ↑ 140% YTD

• OPEC+ delay oil production hikes until April

• Brent trapped in range – support at $70, resistance at $76

Bitcoin surpasses the $100,000 milestone while oil turns choppy following the OPEC+ decision.

Here is what you need to know:

    1) Bitcoin’s $100k dream becomes reality

Bitcoin’s $100k dream became a reality on Thursday morning…

Prices jumped over 6%, smashing through this key milestone as investors cheered Trump’s pick to lead the Securities and Exchange Commission.

Crypto advocate Paul Atkins is set to replace Chair Gary Gensler, boosting hopes for more relaxed regulations in the crypto space.

Sentiment towards the crypto space has also been boosted by recent comments from Fed Chair who compared Bitcoin to gold but “only its virtual, it’s digital”.

Hitting $100,000 is certainly a major milestone and something that could support gains for the remainder of 2024.

The next key event that could rock Bitcoin may be Friday’s NFP report which is likely to influence Fed cut bets.

Traders are currently pricing in a 74% probability of a 25-basis point Fed cut in December. Any changes to these bets may influence cryptocurrencies which have shown sensitivity to US interest rates.

Looking at the charts, Bitcoin is firmly bullish – boasting a year-to-date gain of over 140%.

• A strong weekly close above $100,000 may signal further upside.
• However, should prices slip below this key level – bears may target $95,000.

    2) OPEC+ kicks can down the road…

Oil prices initially slipped on Thursday after OPEC+ decided to delay oil production hikes by three months. However, losses were clawed back as investors perused the details of the new output plan.

The cartel has decided to unwind output cuts at a slower pace over an 18-month period starting from April 2025.

Nevertheless, OPEC+ is in a tricky position with production hikes down the road leading to potentially lower prices.

Even if they opt to delay production beyond April, this could spark internal disputes while raising the risk of a price war.

In addition, Trump’s return to the White House adds another element of uncertainty for the cartel ranging from tighter sanctions on OPEC members to tariffs impacting China’s demand.

The next OPEC+ meeting is scheduled for May 28, 2025 according to a statement from OPEC.

Looking at the technical picture, Brent remains in a range on the weekly charts with support at $70.00 and resistance at $76.00. A breakout could be on the horizon.