Bitcoin has been in continuous adjustment since reaching a historical high of $108,365 on December 17, and faced strong selling pressure again around 23:00 last night (30th), falling below $92,000, with a low of $91,540.
Subsequently, although it briefly rebounded to $95,000, it quickly fell again, reporting $92,426 before the deadline, a decline of 1.45% in nearly 24 hours.
MicroStrategy adds another $209 million in Bitcoin.
However, against the backdrop of Bitcoin's decline, Michael Saylor, founder of Bitcoin holding giant MicroStrategy, tweeted last night (30th) that MicroStrategy purchased 2,138 BTC for a total price of $209 million, averaging about $97,837 per BTC, showing no concern that BTC might have reached a temporary high.
Bitcoin reserves plummeted to 2.4 million Bitcoins.
On-chain data shows that Bitcoin reserves across exchanges are continuously declining, leading to price increases. This year, the reserves of centralized exchanges dropped from 3 million in January to 2.4 million. The approval of a spot Bitcoin ETF in January led to this decline.
After receiving approval, BTC prices rose to new highs above $7,000. With funds flowing into the ecosystem, most whales withdrew assets from exchanges. The outflow of funds from exchanges indicates an increase in price trends, as whales consider long-term holdings. Conversely, the inflow into these platforms due to transfer-related public sentiment could lead to selling pressure.
Cryptocurrency analyst KriptoBaykusv2 explained that the presence of institutional investors has led to the status quo, as they view rapid inflows of funds as a sign of more profits. Most traditional investors buy on dips and maintain a long-term holding strategy. On the other hand, retail investors tend to transfer tokens with slight price changes, leading to the redistribution of Bitcoin.
This shift is particularly evident among institutional investors, who are increasingly adopting a 'hodl' approach, indicating strong confidence in Bitcoin's future potential. As reserves decrease, Bitcoin's price has experienced significant surges. The price was around $40,000 at the beginning of the year, and it accelerated in November, breaking the $100,000 milestone and reaching a new high of $104,000.
As exchange balances decline, Bitcoin miners' reserves have surged alongside the price increase. During the last bear market, miners sold reserves to sustain themselves. High prices have led to a holding strategy to maximize profits.
Bitcoin bulls expect prices to rise significantly.
Due to bullish industry and on-chain factors, Bitcoin enthusiasts expect prices to rise significantly next year. Transferring assets to other custodians shows supply shocks, which could be the catalyst for the required price fluctuations.
As top companies release market outlooks for 2025, several whales have increased their holdings. Bitfinex analysts stated in a recent report that due to institutional activity, the market expects prices to rise to $200,000. Similar companies cite favorable U.S. policies as reasons for expecting the same price range for the asset.
Finally, don't forget to follow, everyone! Let's achieve financial freedom together in this bull market~