The following is an explanation of the latest market trends for Bitcoin:
Price Trend
Recently, Bitcoin's price has experienced significant volatility and remains at a high level overall. In November, the price of Bitcoin continued to rise, briefly reaching $99,000 per coin, setting a new historical record. As of November 28, it maintained a high level of around $95,000, and on December 2, it touched down to $95,000 per coin, with a daily drop of 2.26%.
Some analysts believe that Bitcoin is currently in a consolidation phase and may further decline before a rebound occurs, while others believe it could reach $125,000 per coin by the end of the year.
Market Sentiment
With the rise in Bitcoin's price, market sentiment has warmed, and the lowering of investment thresholds has triggered a hoarding frenzy among international institutions, such as BlackRock's Bitcoin ETF assets continuously expanding, and MicroStrategy significantly increasing its Bitcoin holdings.
However, from the evening of November 25 to the early morning of November 26, Bitcoin's price experienced extreme fluctuations, leading to over 170,000 people facing liquidation, which exposed the market's fragility and high risk. Some investors began to worry about an overheated market and chose to take profits.
Driving Factors
Macroeconomic Environment: The uncertainty of the global economy and changes in monetary policy, such as the adjustments in the Federal Reserve's monetary policy, have heightened market expectations for liquidity easing, making risk assets favored by investors again, thus driving up the price of Bitcoin.
Supply Scarcity: The halving mechanism of Bitcoin is triggered every four years, and the fourth halving was completed in April this year, reducing the supply of new coins and reinforcing its characteristics as a scarce asset. Historically, Bitcoin's market price usually experiences significant upward cycles around the halving.
Lowering of Investment Thresholds: The launch of Bitcoin spot ETFs has lowered investment thresholds, attracting a large influx of capital, becoming an important support for Bitcoin's price. The U.S. Bitcoin spot ETF has become a crucial channel for capital inflow into the crypto market.
Regulatory Expectations: The more friendly outlook towards cryptocurrency regulation under President Trump has boosted market optimism about Bitcoin’s future. Investors anticipate regulatory relaxation and the potential establishment of a national Bitcoin reserve.
Under such trends, the rise of Memes is about to begin, and as the pet that Musk has raised the longest, Marvin will also have a great opportunity to become the new favorite meme.
