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1 week ago
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ARTICLE AD BOX
- Bitcoin (BTC) has breached the $90,000 milestone as it marches towards the much anticipated $100,000 mark.
- With friendly crypto regulations foreseen in the coming year, data shows that profit-taking remains below historical levels.
Bitcoin (BTC) has seen an incredible rally, gaining more than 40% since October 13. The steep rally has encouraged trader confidence, with profit-taking remaining far lower than previous all-time high cycles. According to a Nov. 12th report by crypto analysis firm Glassnode, profit-taking is roughly half of what was seen at earlier peaks.
While the profit-taking is substantial, it remains below historical peaks, which suggests there could be further room to run until potential demand exhaust is reached, Glassnode said in its latest market analysis. According to the report, $20.4 billion in realized profits have been made since Bitcoin entered its most recent ATH discovery phase.
Mike Colonnese, an analyst at H.C. Wainwright, commented on Bitcoin’s current trajectory:
Bitcoin is now in price discovery mode after breaking through all-time highs early last Wednesday morning when it was officially declared that Trump won the election.
He says that strong positive sentiment has set in and will likely continue through the rest of 2024, perhaps even pushing Bitcoin prices to the six-figure mark by year-end.
Bitcoin Hits $90K with Measured Profit-Taking
Glassnode also revealed that realized profit volumes have averaged about $1.56 billion per day since Bitcoin broke its March all-time high of $73,679 on November 5. Those numbers are roughly half of the $3 billion per day during all-time highs in March of the previous cycle, underlining a more measured approach toward profit-taking from investors.
The recent rally in Bitcoin’s price has been partly fueled by rising confidence following Donald Trump’s presidential victory. On November 11, Bitcoin crossed above $85,000 to make its biggest daily gain ever, a jump of $8,400. The momentum has continued, sending Bitcoin to an all-time high of $90,050 on November 12. However, it has since come back to trade at around $87,570, according to CNF’s Bitcoin Price Index.
Cory Klippsten, CEO of Swan Bitcoin: “It is spectacular that after Bitcoin pumped that hard over the weekend on weak volume. […] it is still holding its current price level. ” That could be a sign that, in addition to high volatility, there was pretty strong basic demand and confidence from investors.
Analysts Predict $100K Mark Ahead
Several traders remain optimistic about the future values of Bitcoin, citing further gains ahead. Prominent pro-Bitcoin author and businessman Robert Kiyosaki recently posted a statement that he remained in Bitcoin “till it passes $100,000.” “Then I will stop. Not a time to get greedy,” Kiyosaki further added, to indicate a tactical reason for investing.
Chris from WealthSquad tweeted on November 12 that “Bitcoin is only $89k now, still cheap.” Continuing further, he predicted, “When Bitcoin crosses gold’s market cap and the price of a Bitcoin is $500k +, we’ll realize this was the most obvious thing ever,” thereby underlining the long-term potential he sees in Bitcoin.
While Bitcoin keeps climbing, the other cryptocurrencies show mixed performances so far. The highly popular memecoin Shiba Inu is down 17% following its 26% rise in the week. On the other hand, Dogecoin emerged as the big winner, having risen by over 120% since November 5, probably due to its connection with Elon Musk, the recent influencer in Trump’s election victory.
English (US)