Bitwise's European research director Andre Dragosch recently commented on Bitcoin's pullback situation, stating that the reason Bitcoin has repeatedly failed to breach $100,000 is that long-term investors in the market have made significant profits during the post-election celebratory rally, and these individuals have now begun to sell to take profits.
Since Trump won the US election on November 8, Bitcoin has been steadily moving towards the $100,000 mark, peaking at over $99,500 on November 23, with a cumulative increase of 37.6% over nearly one month.
However, since last weekend, Bitcoin has begun to show the most significant pullback since Trump's election, fluctuating down from around $99,000, dropping to a low of $90,800 this morning. As of the writing, it has slightly rebounded to $91,941, with the decline in the past 24 hours narrowing to 2.3%.
Bitwise: Investors begin to take profits
Regarding the recent pullback, Bitwise's European research director Andre Dragosch stated earlier that Bitcoin's repeated failure to breach $100,000 is due to long-term investors in the market having made significant profits during the post-election celebratory rally, and these individuals have now begun to take profits.
However, Dragosch also added that although Bitcoin's upward momentum may pause in the short term, this should be viewed as a healthy pullback in a bull market rather than a breakdown of the upward trend.
The valuation of Bitcoin has not yet reached its peak level.
Additionally, Galaxy Digital CEO Mark Novogratz predicted last week that although reaching the $100,000 target for Bitcoin after the election is inevitable, there will still be a certain degree of pullback due to the large amount of leverage in the market.
There is a large amount of leverage in the market, so Bitcoin's price will also experience corrections.
At the same time, Novogratz also reminded investors that it is better to buy Bitcoin directly rather than companies related to Bitcoin, such as MicroStrategy, because when the market is liquidated, these companies may experience larger declines.
Finally, Trade Nation senior market analyst David Morrison pointed out that while $100,000 indeed seems like a nice round number, this level has also become a threshold or barrier for long-term investors to take further profits.
Glassnode: Long-term holders still expect higher prices
However, contrary to the short-term bearish view, Glassnode previously analyzed that although Bitcoin rose to $90,000 after Trump's victory, long-term holders of up to 14 million Bitcoins have all entered a profit state. The strong buying power of Bitcoin spot ETFs has already absorbed over 90% of the selling pressure, providing key support for Bitcoin prices.
Meanwhile, long-term holders may continue to wait for higher prices to sell after experiencing some profit-taking, suggesting that the number of Bitcoins in circulation may take some time before showing growth.
