‘Bitcoin $100K’ Was So Near, Yet So Far. What’s Next? | Global News Avenue

The “Bitcoin $100,000” price milestone has proven elusive. Some analysts have accused uneasy investors of taking profits as companies continue to buy crypto assets.

Bitcoin (Bitcoin USD), the largest cryptocurrency by market capitalization, rises to a new all-time high Over $99,500 on Friday. The $100,000 mark seems imminent. Now, however, it’s closer to $92,000.

what happened? What happens next?

Profit-taking hampers Bitcoin rally

Bitcoin rally accelerates Donald Trump’s election victoryThe crypto industry has been looking to help boost Bitcoin and other crypto assets amid optimism that a more crypto-friendly government and Congress could pave the way for regulatory clarity.

Still, that rebound has slowed recently. Some analysts said this could be the result of relatively new investors taking profits while long-term investors hold on to Bitcoin.

Most of the selling “came from buyers who purchased more than $56,000 in 2024,” Galaxy Digital CEO Mike Novogratz said in an X post on Sunday, citing Galaxy research. “Normal profit taking.

Bitcoin analyst James Check said those who bought Bitcoin six weeks ago at around $68,000 were largely responsible for this month’s selling pressure.

Investors pull money from Bitcoin ETFs

There was also a strong sell-off in Bitcoin exchange-traded funds (ETFs) on Monday, with the category seeing its third-highest outflow on record at $435.3 million, according to Farside Investors.

This follows large inflow of funds This has been the case in these products since Election Day. (BlackRock’s iShares Bitcoin Trust (it will goThere were still $267.8 million in inflows on Monday, despite net outflows for the category overall. )

Bitcoin ETFs hold Bitcoin, and as more investors put their money into these products, they need to buy Bitcoin. Here’s why spot Bitcoin ETFs are partially responsible for the cryptocurrency’s rise this year.

Where will Bitcoin go?

Bitcoin prices have more than doubled so far this year, rising about 120%. The S&P 500, a broad stock index, has risen about 25%.

Some analysts are calling for Bitcoin to rise above $100,000, but others believe this may not last long. Novogratz told CNBC last week that he expected a price correction but that Bitcoin would not fall below $80,000.

The recent weakness comes as more and more companies are buying Bitcoin. MicroStrategy (Magnetic transmission technology) Announce Bought another $5.4 billion worth of Bitcoin Monday morning. Companies like Marathon Digital (Mara), Semler Science (Small LR) and rumble (rum) also promises buy bitcoin.

Coinbase Research said that if this trend continues, it could boost Bitcoin prices.

“We believe inflows from these businesses represent an increasingly important source of capital inflows to the sector, as we believe corporate buying programs are likely to be relatively more price elastic,” Coinbase researchers wrote in a recent commentary. “This may contribute to continued market momentum in the near term.”