Bitcoin’s high stakes: Why consolidation is key for BTC to rebound
Ten days ago, Bitcoin [BTC] hit a new ATH of $108K, a level it’s been eyeing since the “Trump pump.”
But even with no signs of an overheated market and greed staying well below the 90 mark, investor caution soared as the FOMC warned of a “cautious” 2025 ahead.
The result? BTC saw a sharp decline, wiping out much of the gains made during the final phase of the election cycle.
With a potential correction looming, many chose to cash out at the $94K price point – leading to over $7.17 billion in profits being realized.
While it might seem like a setback, the exit of weak hands is often seen as a ‘healthy’ retracement, setting the stage for fresh players to enter and grab the available supply.
Now, with BTC creeping back toward $100K, is new capital flooding back into the market, or is the aftermath of that ‘unexpected’ decline still fresh, keeping investors on edge?
Risk-averse investors exit amid caution
Following the massive cash-out, Bitcoin exchange reserves surged to 2.427 million – the highest spike since November.
Short-term holders’ SOPR also hit 1.04, signaling that those with less than five months of exposure were cashing out and locking in profits.
In addition, BTC inflow into exchanges reached a five-month high, with 21K BTC deposited at an average price of $98K.
This sent BTC down to $92K, its lowest level in over two weeks, with $94K clearly proving to be a strong profit-taking zone.
