In a significant turn of events, Bitcoin’s price dipped to $97,860 today following weeks of consecutive rallies. Just a few days ago, it had soared to a record high of $103.9K, spurred by the momentum generated after Donald Trump’s victory in the November 6 election.
However, the price impetus rapidly waned as Bitcoin faced difficulties in sustaining its gains over the past several days.
It’s not just Bitcoin. Other major cryptocurrencies have also witnessed a price decline. For example, Ethereum briefly reached $4K earlier today only to then experience a 3% drop. Coincidentally, at around the same time, Justin Sun offloaded a substantial amount of Ethereum worth $119 million to HTX, intensifying market pressure.
Nevertheless, some altcoins are still faring well. PEPE has reached a new all-time high, and X Empire has registered a significant 47% surge this week, offering a glimmer of hope to investors.
The selling pressure has reached staggering levels. Data from Coinglass indicates that 204,384 traders had their positions liquidated, amounting to a total of $509.48 million. Moreover, the Bhutan Government sold $40 million worth of Bitcoin to QCP Capital, further fueling the downward trend.
In addition, the impending expiration of approximately 39,960 Bitcoin options contracts on December 27 has left many investors apprehensive about potential further price declines in the coming weeks. Compounding matters, the Cardano Foundation’s social media account was hacked, heightening concerns among crypto investors.
Despite these setbacks, some experts contend that the bull run is not yet concluded. Many foresee a bullish market throughout the next year.
Some even speculate that this could mark the onset of an “altcoin season,” wherein smaller coins garner increased attention as Bitcoin’s dominance diminishes. The Altcoin Season Index has slipped from 86 to 73 this month, suggesting that altcoins are maintaining a firm footing.
Furthermore, the Federal Reserve’s meetings and economic reports, such as the CPI, PPI, and Import and Export price index, could potentially alter the market’s course. This recent pullback may have introduced some uncertainty, but it could also present an opportunity for investors to acquire assets at lower prices.
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