Bitcoin price today: $95,900
Bitcoin price was hovering around $95,900 on Tuesday after a mild correction the previous day. Traders should be careful after the US government moved 10,000 BTC from a seized Silk Road address to Coinbase Prime on Monday. Olivier Mamet, Head of US OTC Trading at Gemini, highlights factors that could impact BTC prices in the short to medium term.
Bitcoin (BTC) price is hovering around $95,900 on Tuesday, following a gradual correction from the previous day. Market sentiment turned cautious after the US government transferred 10,000 BTC worth $962.88 million from wallets seized on Silk Road to Coinbase Prime. Olivier Mamet, Head of US OTC Trading at Gemini, outlines the potential impact on prices in the short to medium term.
Bitcoin price drops below $95,000 as US government moves 10,000 BTC
Bitcoin prices fell in the Asian session, but recovered slightly in the early New York session on Tuesday, trading around $95,900 after a mild correction on Monday. If the economic downturn continues, the US government moving BTC onto an exchange could lead to a short-term crash towards $90,000.
Arkham, a U.S. government-linked wallet, moved 10,000 BTC worth $962.88 million from a seized Silk Road address to Coinbase Prime on Monday, according to data from cryptocurrency intelligence tracker Arkham. Transferring such large amounts of Bitcoin to exchanges, especially Coinbase Prime, often signals an intent to sell or distribute, and contributes to bearish sentiment as market participants expect supply to increase. may be produced.
Traders should be careful, as the U.S. government's sale of 29,799 BTC on July 29 sent the price plummeting, with Bitcoin's value dropping more than 20% in a week. Large government sales like this typically create significant selling pressure.
QCP's Tuesday report highlights continued optimism on the institutional demand side.
“Yesterday, spot ETFs recorded another $350 million in inflows, while MARA Holdings followed MicroStrategy, acquiring $618 million worth of BTC over the past two months,” QCP analysts said. said.
“Other crypto mining companies like Riot Platform are likely to stop selling BTC, and some are considering expanding their holdings. Microsoft is reportedly considering purchasing BTC. Coupled with the news, this highlights growing corporate interest in Bitcoin as a reserve asset.”
In an exclusive interview with FXStreet, Olivier Mamet, Head of US OTC Trading at Gemini, spoke about the factors that will impact Bitcoin prices in the short and medium term. He said, “The main factor that could affect the price of Bitcoin in the short term is the expectations for the new Trump administration in the United States, including who will be nominated to key positions in government agencies.'' No,” he said.
“For the past four years, much of the environment surrounding the U.S. crypto industry has been difficult due to the current administration’s ‘regulation by enforcement’ approach,” he added.
However, it is expected that the new party entering the White House, the Securities and Exchange Commission (SEC), and the Treasury Department will support regulations that foster the growth of the crypto industry.
“Another factor could be developments surrounding ongoing litigation, with Tornado Cash being the latest one. Markets are trading in a positive direction as the U.S. presidential inauguration approaches in January. It is important to keep a close eye on overall market sentiment and social media indicators,” said Olivier Mamet.
Bitcoin price prediction: revised towards $90,000
Bitcoin prices fell slightly in early Monday session after a correction last week. As of this writing Tuesday, it is hovering around $95,900.
If BTC faces a pullback, it could extend the correction to retest the $90,000 support level.
The relative strength index (RSI) on the daily chart is 61, rejecting the overbought level of 70 and moving downwards, indicating weaker bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover on November 26, generating a sell signal. The MACD also shows a rising red histogram bar below the zero neutral line, suggesting that Bitcoin price may fall.
BTC/USDT daily chart
However, if BTC continues its upward momentum, it could reach an all-time high (ATH) level of $99,588.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Also, since cryptocurrencies are generally volatile, stablecoins allow investors to store value.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. A decline in BTC's dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
