Bitcoin's price dropped just before the 100,000 USD threshold amidst excessive optimism for cryptocurrencies.
Bitcoin fell to 95,776 USD on November 24 after being just 300 USD away from the six-figure mark on November 22. The digital currency has been "struggling" to maintain its value around 97,000 USD, creating a gloomy atmosphere for the cryptocurrency market in general.
Matt Maley, market strategist at Miller Tabak, said: "Bitcoin may need some time to adjust as the currency approaches the 100,000 USD mark. I see the current optimism is a bit overstated."
The new administration of President-elect Donald Trump is said to be a driving force for cryptocurrencies on Wall Street and other markets. The total market value of digital assets has increased by about 1 trillion USD since Trump's victory on November 5.
Trump has committed to proposing more friendly regulations and establishing a national Bitcoin reserve, but the timing and feasibility of this plan remain open questions.
David Lawant, research director at leading cryptocurrency brokerage FalconX, said: "I see the trend of Bitcoin being sold more as it approaches the 100,000 USD mark. This indicates that Bitcoin may fluctuate in this range before a real breakout occurs."
Traders are leveraging the positive outlook for the cryptocurrency market in the U.S. to push Bitcoin's price closer to the 100,000 USD mark, a symbolic milestone that refutes views that digital assets lack substantial value.
In the latest development, the American financial services company Cantor Fitzgerald is negotiating with Tether Holdings to receive support from this stablecoin issuer for its Bitcoin mortgage lending program.
Cantor's CEO, Howard Lutnick, is co-chairman of President-elect Trump's transition team and has been nominated to head the Department of Commerce.
The president-elect's transition team has also discussed whether to establish the first position in the White House dedicated to digital asset policy.
Since Trump's victory, money has poured into exchange-traded funds (ETFs) directly investing in Bitcoin in the U.S., with a total asset value of 107 billion USD.
"Bitcoin has been overbought since the election, so a price pause is inevitable," said Stephane Ouellette, CEO of cryptocurrency investment firm FRNT Financial. "However, this is just a slight decline and we are only returning to the price level of mid-last week."
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