Bitcoin hit a new all-time high of $108,268 following bullish announcements and market sentiment. Shiliang Tang highlighted the growing interest of institutional investors as MicroStrategy joins the Nasdaq 100 and continues to buy Bitcoin. Cryptocurrency analyst RektCapital warns of historic price decline and urges preparations for future correction. At the same time, the biggest Bitcoin whales continue to buy, including MicroStrategy, Metaplanet, and the US Spot Bitcoin ETF.
In true bull market style, Bitcoin is hitting new all-time highs (ATH) after hitting new all-time highs. Early Wednesday morning, the OG cryptocurrency hit an unprecedented US$108,268 (A$170,828). However, at the time of writing, the price per BTC has fallen again and is currently trading at US$106,211 (AU$167,610).
Bitcoin (BTC) weekly chart, source: CoinMarketCap
BTC price surge: further upside possible or is a more serious correction looming?
Sirian Tan, president of Alberos Markets, said the price increase came on the back of several bullish announcements regarding Donald Trump and MicroStrategy's entry into the Nasdaq 100. Tan said that MSTR's continued means of purchasing BTC “capital turnover has greatly contributed to BTC's advantage, and BTC has reached ATH and even earned more profits.” It's about extracting more capital from the market. ”
However, crypto Twitter analyst RektCapital said with traders that historically drawdowns have occurred about 6-8 weeks after BTC entered price detection following previous ATH violations. I'm reminding investors.
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The trader expects a deeper correction could wipe out much of the gains made in the past few weeks.
In 2017, Bitcoin fell -34% in week 8 of Price Discovery. Bitcoin fell -16% in week 6 of 2021. Will history repeat itself?
Recto Capital
The trader said the important thing is not if a correction will occur, but when, as we have experienced in every BTC cycle. RektCapital argued that it is important to be prepared when a correction comes.
Because when that happens, it wipes out weeks of upside in the process. Price discovery corrections are a normal part of BTC cycles and are experienced in every cycle.
Recto Capital
As reported, Michael Saylor will continue his strategy and add more BTC to his MicroStrategy (MSTR) coffers, regardless of Bitcoin price.
And it seems to be here to stay. Metaplanet, often referred to as Japan's MicroStrategy, has announced plans to purchase Bitcoin for a total of 4.5 billion yen (A$47.3 million).
Metaplanet Co., Ltd. resolved at the board of directors meeting held on December 17, 2024 to issue the 4th straight bond. […] The funds raised from this issuance will be used to purchase Bitcoin.
Metaplanet Co., Ltd.
Metaplanet stock has soared more than 100% in the last month as it continues to follow Saylor's Bitcoin buying strategy.
Metaplanet Inc., Source: Google.Finance
Meanwhile, U.S. spot exchange-traded funds (ETFs) started the week strong. The latest trading data shows net inflows on Monday 18 December were US$636.9 million (A$1 billion).
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BlackRock's IBIT captured the largest share, accounting for a whopping US$418 million (AU$659.7 million) in Bitcoin, and currently holds 2.586% of the total BTC supply (all US ETFs). (compared to 5.4%).
