Bitcoin’s Rollercoaster Ride: Dips Below $100K Following Historic High
Bitcoin, the world’s leading cryptocurrency, showcased dramatic volatility this week. It broke the psychologically significant barrier of $100,000 for the first time in its 15-year history. However, it soon experienced a 14% drop to below $90,000 in a phenomenon analysts termed a “mini flash crash.” As of December 6, 2024, Bitcoin has managed to bounce back, once again crossing the $100,000 mark.
The sudden sell-off was attributed to a combination of factors. These included profit-taking after reaching the historic milestone, increased liquidations amounting to over $1.5 billion in leveraged positions, and the sale of crypto holdings by companies such as Meitu. Despite the turbulence, Bitcoin ETFs, notably BlackRock’s IBIT, continued to attract strong inflows, recording $770.5 million in gains over six consecutive days.
Market experts remain bullish about Bitcoin’s long-term prospects. Many predict that the cryptocurrency could reach a value between $105,000 and $110,000 by the end of the year. The Federal Reserve’s potential 0.25% rate cut in December, which has a 74% likelihood according to the CME FedWatch Tool, could provide additional tailwinds for risk assets, including cryptocurrencies.
Source: Coingape