2024

Bitcoin

<p class="is-style-lead">With Bitcoin just shy of the $100,000 milestone, are profit-takers controlling the market, or is this a setup for another massive rally?</p> 
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   <li><a href="#btc-cools-off">BTC cools off</a></li>
   <li><a href="#whats-really-happening-with-bitcoin">What’s really happening with Bitcoin?</a></li>
   <li><a href="#experts-shed-light-on-bt-cs-path">Experts shed light on BTC’s path</a></li>
   <li><a href="#what-to-expect-next">What to expect next?</a></li>
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<h2 class="wp-block-heading" id="btc-cools-off">BTC cools off</h2> 
<p>Bitcoin (<a rel="" href="https://crypto.news/price/bitcoin/">BTC</a>) has had an exciting run recently, but it seems the party is taking a breather. After coming tantalizingly close to the $100,000 mark, the world’s largest crypto by market cap is cooling off.&nbsp;</p> 
<p>As of Nov. 26, Bitcoin is trading around $94,300, marking a 3% drop in the last 24 hours. This pullback comes after BTC reached an all-time high of $99,655 on Nov. 22.&nbsp;</p> 
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  BTC 6-month price chart | Source: <a rel="" href="https://crypto.news/price/bitcoin/">crypto.news</a>
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<p>The recent price action seems like a classic case of profit-taking. This selling pressure was initially cushioned by strong demand from spot Bitcoin ETFs, which had been on a five-day streak of net inflows.&nbsp;</p> 
<p>However, on Nov. 25, that trend <a rel="" href="https://crypto.news/bitcoin-etfs-record-438m-in-outflows-as-btc-dips-below-93k/">reversed</a>, with ETFs seeing $435 million in outflows, according to CoinGlass <a href="https://www.coinglass.com/bitcoin-etf" target="_blank" rel="nofollow">data</a>.&nbsp;</p> 
<p>Zooming out, however, Bitcoin’s broader sentiment is still bullish. Since the U.S. presidential election on Nov. 5, which saw <a rel="" href="https://crypto.news/tag/donald-trump/">Donald Trump</a>’s unexpected return to the political stage, BTC has surged more than 30%.&nbsp;</p> 
<p>Meanwhile, the anticipation of policy shifts, particularly with the impending <a rel="" href="https://crypto.news/gensler-to-resign-sec-chair-what-next-under-trump/">resignation</a> of SEC Chair Gary Gensler — set to step down on Jan. 20 2025 — has only fueled the narrative that crypto might finally find itself on friendlier regulatory ground.</p> 
<p>So, where does Bitcoin go from here? Has it already peaked, or is this just a pause before another climb? Let’s find out.</p> 
<h2 class="wp-block-heading" id="whats-really-happening-with-bitcoin">What’s really happening with Bitcoin?</h2> 
<p>As Bitcoin weathers its current correction, the larger narrative surrounding BTC remains <a rel="" href="https://crypto.news/btc-and-microstrategy-pushed-mstr-into-top-100-club/">intricately tied</a> to one of its most vocal champions: MicroStrategy.&nbsp;</p> 
<p>The software-turned-Bitcoin investment firm, led by Michael Saylor, has once again made headlines with its monumental purchase of 55,500 BTC between Nov. 18 and Nov. 24.&nbsp;</p> 
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   <p lang="en" dir="ltr">MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">#bitcoin</a> and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$BTC</a> acquired for ~$21.9 billion at ~$56,761 per bitcoin. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$MSTR</a> <a rel="nofollow" href="https://t.co/79ExzXk4UM" target="_blank">https://t.co/79ExzXk4UM</a></p>— Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1861033309934862601?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">November 25, 2024</a>
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<p>The $5.4 billion acquisition — at an average price of $97,862 per Bitcoin — represents MicroStrategy’s largest single-week buy to date. With this latest spree, the company now holds approximately 386,700 BTC, acquired at an average price of $56,761 per token.</p> 
<p>MicroStrategy has now disclosed Bitcoin acquisitions on three consecutive Mondays since Donald Trump’s re-election, amassing $11.43 billion worth of BTC in November alone.&nbsp;</p> 
<p> You might also like: <a rel="" href="https://crypto.news/btc-and-microstrategy-pushed-mstr-into-top-100-club/"> Bitcoin and MicroStrategy: The feedback loop that pushed MSTR into the top 100 club </a> </p> 
<p>Such aggressive accumulation adds growing institutional confidence in Bitcoin as a long-term asset, buoyed by expectations of a crypto-friendly regulatory environment under the incoming administration.&nbsp;</p> 
<p>Yet, in the short term, these high-profile purchases add volatility to an already choppy market. On Nov. 25, Bitcoin traded as high as $98,000 levels, but following the announcement of the $97,862 purchase price, speculative traders reacted swiftly. BTC plunged to $92,240 within hours, triggering sharp liquidations in derivatives markets.&nbsp;</p> 
<p>According to CoinGlass <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="nofollow">data</a>, over $149 million in BTC futures contracts were wiped out in the last 24 hours as of Nov. 26, with bulls bearing the brunt — $113 million in long positions were liquidated compared to $35 million in shorts.</p> 
<p>Retail traders tend to interpret institutional buy prices as market benchmarks, often moving their bids closer to those levels. When this happens during a period of heightened leverage in the market, even minor corrections can snowball into sharper sell-offs as liquidation cascades unfold.</p> 
<p>Despite this short-term turbulence, the long-term outlook remains optimistic. With over 134,000 BTC pulled off the market in November alone, the firm is essentially locking away liquidity, leaving less Bitcoin available to meet future demand.&nbsp;</p> 
<p>Over time, this could amplify price momentum during the next surge in buying interest.</p> 
<h2 class="wp-block-heading" id="experts-shed-light-on-bt-cs-path">Experts shed light on BTC’s path</h2> 
<p>​​Bitcoin’s recent pullback may feel unsettling, but experts across the crypto space are urging calm — and with good reason.&nbsp;</p> 
<p>Santiment, a leading on-chain analytics platform, recently shed light on an important trend — the behaviour of large Bitcoin holders.&nbsp;</p> 
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   https://twitter.com/santimentfeed/status/1861152412863795352 
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<p>Despite Bitcoin’s price dipping below $95,000 this week, wallets holding at least 10 BTC have been on an accumulation spree, adding over 63,922 bitcoins in November alone, worth approximately $6.06 billion.&nbsp;</p> 
<p>As Santiment mentioned, “any fall may be short-lived” as long as these wallets continue building their holdings.&nbsp;</p> 
<p>Meanwhile, Ki Young Ju, the CEO of CryptoQuant, pointed out that even during the explosive bull run of 2021, steep corrections of up to 30% were common.&nbsp;</p> 
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   <p lang="en" dir="ltr">Even in a parabolic bull run, <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">#Bitcoin</a> can see -30% pullbacks.<br><br>Such corrections repeatedly occurred during the 2021 price discovery from 17K to 64K.<br><br>This isn’t a call for a correction—just manage your risk and avoid panic selling at local bottoms. We’re in a bull market. <a rel="nofollow" href="https://t.co/B5zpk7P0N9" target="_blank">pic.twitter.com/B5zpk7P0N9</a></p>— Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1861287668602282299?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">November 26, 2024</a>
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<p>These pullbacks, he explains, were a natural part of the price discovery process that took Bitcoin from $17,000 to $64,000 in just months. As Ju puts it, “We’re in a bull market.”&nbsp;</p> 
<p>Adding to this bullish sentiment is crypto analyst Michaël van de Poppe, who highlighted a fundamental difference between this cycle and those of the past: the sharp decline in Bitcoin reserves held on exchanges.&nbsp;</p> 
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   <p lang="en" dir="ltr">This is one MASSIVE difference from the previous cycles.<br><br>The amount of <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$BTC</a> on exchanges has substantially decreased and keeps decreasing.<br><br>A supply shock is imminent with the big amount of liquidity being added.<br><br>This cycle we'll go way higher than we all expect. <a rel="nofollow" href="https://t.co/m5gCMA5isd" target="_blank">pic.twitter.com/m5gCMA5isd</a></p>— Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1861141557728231881?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">November 25, 2024</a>
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<p>This drop signifies that more investors are moving their BTC into long-term storage, effectively reducing the supply available for trading. Van de Poppe sees this as a precursor to a “supply shock,” especially as more liquidity flows into the market.&nbsp;</p> 
<p>With demand outpacing supply, the stage could be set for Bitcoin to surpass expectations. As he predicted, “This cycle, we’ll go way higher than we all expect.”&nbsp;</p> 
<p> You might also like: <a rel="" href="https://crypto.news/top-5-altcoins-from-the-2021-bull-run-set-to-explode/"> Top 5 altcoins from the 2021 bull run set to explode this cycle&nbsp; </a> </p> 
<h2 class="wp-block-heading" id="what-to-expect-next">What to expect next?</h2> 
<p>For Bitcoin, the immediate focus remains centred on investor behaviour and macroeconomic triggers. While whales and long-term holders steadily absorb the available supply, near-term volatility persists as speculative traders recalibrate their positions.</p> 
<p>The market appears to be walking a fine line between two scenarios: a consolidation phase around the $90,000-$95,000 range or a sharper pullback testing the $85,000 level, driven by liquidity pressures and derivatives positioning.&nbsp;</p> 
<p>Despite this, the fundamentals — such as shrinking exchange reserves and consistent accumulation—indicate that any dips will likely encounter strong buying interest.</p> 
<p>This dynamic sets the stage for a potential recovery if demand spikes, especially as the holiday season often sparks increased retail investor activity.&nbsp;</p> 
<p>That said, altcoin investors should proceed with caution; while a dip in Bitcoin dominance can signal opportunities for altcoins, a sharp Bitcoin correction could pull the entire market downward, as we’re witnessing currently.</p> 
<p>Compounding these market sentiments are geopolitical risks. The escalating Russia-Ukraine conflict and mounting instability in the Middle East have the potential to unsettle global markets, heightening risk aversion.&nbsp;</p> 
<p>Such developments could temporarily weigh on crypto sentiment, particularly for altcoins, as investors flock to safer assets.</p> 
<p>Amid this backdrop, all eyes are on the Federal Reserve’s December meeting, which carries key implications for financial markets, including crypto.&nbsp;</p> 
<p>Currently, there’s a 52% <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="nofollow">probability</a> that the Fed will cut interest rates by 25 basis points, bringing them down to 4.25%-4.5%.&nbsp;</p> 
<p>If this reduction materializes, it could act as a tailwind for Bitcoin and the broader crypto market by easing borrowing costs and boosting liquidity.</p> 
<p>Hence, Bitcoin’s immediate path will likely be shaped by the balance between accumulation and market sentiment. As always, trade wisely and never invest more than you can afford to lose.</p> 
<p> Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. </p>

Bitcoin’s cooling period: A pause before the next ascent?

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