Bitcoin retreats below its historic high of $100,000
Last week, Bitcoin marked a historic milestone by surpassing the symbolic level of $100,000, establishing a new all-time high and reaching a market capitalization of over $2 trillion for the first time.
Reaching six figures (in US dollars) is no small feat and demonstrates how far Bitcoin has come in recent years. More and more investors want exposure to this asset class, which has driven greater capital inflows into the sector.
This is especially reflected in spot Bitcoin ETFs, which continue to break records. BlackRock's IBIT ETF, the largest among spot Bitcoin ETFs, now has over $50 billion in assets and achieved this milestone in just 228 days, five times faster than any previous ETF.
Despite this, reaching $100,000, given the psychological significance of this price level, could lead some investors to take profits. We are already seeing signs of this this week, with the price falling slightly below $100,000, currently trading at $97,500.
Typical pullbacks in bullish Bitcoin markets usually range between 20% and 40%, so while the drop below $100,000 is small so far, it would not be surprising to see a deeper correction of this magnitude, especially as we approach the holiday season when investors often rebalance their portfolios in preparation for the new year.
