Bitcoin approached the $100,000 mark earlier this week but failed to break through this psychological barrier. On Tuesday, Bitcoin fell to a low of $90,702.27, but by Friday, it had rebounded to around $97,000 and was nearing $98,000.
Market analysis suggests that one reason for Bitcoin's decline is that investors began to take profits at high levels, leading to an increase in Bitcoin supply. Andre Dragosch, head of research at cryptocurrency asset management firm Bitwise Europe, wrote in a research report shared on Monday, "Long-term holders have started to sell Bitcoin in large amounts during the recent rally."
Some strategists are uncertain whether Bitcoin can gather enough momentum to reach the six-figure milestone, citing not only long-term holders beginning to sell but also more fundamental reasons.
David Morrison, senior market analyst at brokerage Trade Nation, stated that the $100,000 threshold "seems to have become a high hurdle for further increases, or even an obstacle."
In fact, George Milling-Stanley, chief gold strategist at State Street Global Advisors, believes that Bitcoin's recent surge may have given investors a false sense of security. Milling-Stanley stated, "Simply put, Bitcoin is an investment seeking returns, which indicates that investors flock to Bitcoin for capital gains, rather than because they see the value or utility of Bitcoin."
The options based on spot Bitcoin ETFs launched last week may be related to this, as options allow investors to bet on Bitcoin's price volatility with less cash instead of buying Bitcoin itself.
In fact, long-term cryptocurrency investor and Galaxy Digital CEO Mike Novogratz stated, "The leverage in the crypto space is generally too high, so a correction will occur."
That said, if former President Trump fulfills even a small part of his commitment to the cryptocurrency industry, the $100,000 price level may not be the ceiling, but just another stepping stone during Bitcoin's celebratory rise.
This month, spot Bitcoin ETFs issued by publishers such as BlackRock and Fidelity have attracted $6.2 billion in funds so far in November, compared to a previous peak of $6 billion in February, when investors were excited about these products launched at the beginning of the year.
Josh Gilbert, market analyst at eToro, stated, "Under the Trump administration, companies and pension funds find it easier to hold this asset, so we will continue to see funds flowing into ETFs."
Article reprinted from: Jinshi Data
