Bitcoin price today: $98,500
Bitcoin prices have gradually fallen after rising 4% last week, trading below $98,500 on Monday. According to the NCPPR report, Amazon shareholders are asking the company to consider investing in Bitcoin as a reserve asset to beat inflation and increase shareholder value. Auros Managing Director Le Shi said in an exclusive interview that Bitcoin is “relatively early” in a bullish cycle.
After rising 4% last week to hit an all-time high (ATH) of $104,088, Bitcoin (BTC) fell 2.5% on Monday, trading below $98,500. Once BTC reached the $100,000 milestone, large companies showed interest in the largest digital asset by market capitalization.
Over the weekend, the National Center for Public Policy Research (NCPPR) shared a shareholder proposal asking Amazon (AMZN) to consider investing in Bitcoin as a reserve asset to beat inflation and increase shareholder value. This comes after the NCPPR filed a similar report last month from Microsoft (MSFT) shareholders asking the tech company to invest in Bitcoin.
Amazon and Microsoft are attracting corporate interest in Bitcoin.
Bitcoin price reached a key milestone of $100,000 and reached a new ATH of $104,088 on Thursday before declining on Monday.
“For those who have been in this industry for some time, this feat would have been unimaginable in its early days,” analysts at New York Digital Investment Group (NYDIG) said in a weekly report.
“Just two years ago, the entire industry was in trouble following the collapse of foundational institutions such as Genesis, FTX, BlockFi, Celsius, Three Arrows, Voyager and LUNA/UST digital assets. Bitcoin was at its lowest point. “This is an unprecedented situation, with prices falling below $15,000, well below the previous cycle's highs,” they said.
The recent surge has drawn the attention of big companies such as Microsoft and Amazon to Bitcoin. Last week, MicroStrategy co-founder Michael Saylor presented Microsoft's board of directors with reasons why the tech giant should buy Bitcoin.
According to a report by QCP Capital, Microsoft shareholders are scheduled to vote on a proposal to add BTC to its balance sheet on December 10th. “If this proposal passes, it will be bullish not only for BTC but also for other investments,” the report notes. Still, members of Microsoft's board oppose the proposal.
Another big name has joined the movement. Amazon shareholders are asking the company to consider investing in Bitcoin as a reserve asset to beat inflation and increase shareholder value, according to a report by the National Center for Public Policy Research (NCPPR).
The report also explains how MicroStrategy (MSTR), which has Bitcoin on its balance sheet, outperformed Amazon stock by 537% in the past year.
“While Bitcoin is currently a volatile asset, as Amazon stock has been at times throughout history, companies have a responsibility to maximize shareholder value over the long and short term. “Amazon should evaluate the benefits of holding at least a portion of its assets, even 5%, in Bitcoin.” said.
Institutional investor demand for Bitcoin remains strong
Looking at Bitcoin institutional flows, demand increased last week. According to Coinglass Bitcoin Spot Exchange Traded Fund (ETF) data, net inflows were $2.77 billion last week, compared to $136.5 million in outflows the previous week.
Total Bitcoin Spot ETF Net Inflows Chart. Source: Coin Glass
In an exclusive interview with FXStreet, Le Shi, managing director of market-making firm Auros, said that given past trends and compared to other years with halvings, Bitcoin is “still relatively early in the bullish cycle.” It's at a stage,” he said.
“The timing is unpredictable, but there are many reasons to be very bullish for the remainder of the year, the last three weeks, and into 2025,” he said.
Bitcoin Price Prediction: Price Trends Suggest a Future Decline
Bitcoin price reached an all-time high (ATH) of $104,088 last Thursday before retreating to around $98,500 on Monday.
Bitcoin’s Relative Strength Index (RSI) is flashing warning signs. The higher high formed on Thursday does not reflect the RSI chart for the same period and indicates the formation of a bearish divergence, which often leads to a short-term correction.
If this bearish divergence plays out, traders would expect a modest rally (either a liquidity gain or a long trap) towards the recent high of $104,088, followed by a sharp decline towards the $90,000 support level. Possibly. A close below this level could lead to further decline towards the next support level at $85,000.
BTC/USDT daily chart
On the other hand, if BTC continues its upward trend and closes above $104,088, it could widen its upside towards an all-time high of $119,510. This level coincides with the 141.4% Fibonacci extension from the November 4 low of $66,835 to Thursday's all-time high of $104,088.
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. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
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. Decreasing BTC 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.
