Bitcoin price today: $102,500
Bitcoin surpassed the $100,000 milestone on Thursday after a week of price action. The election of a pro-crypto SEC chairman, increased demand from institutional investors, and supportive comments from President Vladimir Putin have pushed Bitcoin's market capitalization to $2 trillion. Traders need to be careful about the movement of funds from Mt.Gox and the US government.
Bitcoin (BTC) crossed the $100,000 mark on Thursday, reaching a market cap of $2 trillion, a milestone widely anticipated by crypto market participants. The recent rise in BTC's valuation, which has surpassed six digits, is mainly due to Donald Trump's nomination of a pro-cryptocurrency chairman to head the U.S. Securities and Exchange Commission (SEC), but it is also due to increased demand from institutional investors and Russian President Vladimir Putin's supportive comments about Bitcoin were also a factor.
Trader sentiment remains bullish, but several factors could increase selling pressure, including the transfer of funds from the defunct Mt.Gox exchange and the U.S. government.
Bitcoin price exceeds $100,000
Bitcoin prices rose to six digits in early Asian trading and traded at around $102,700 in European trading on Thursday. Bitcoin's historic rise has sparked excitement among investors and crypto enthusiasts, who are celebrating the achievement as both validation of their long-term investment and the milestone of reaching $2 trillion in market capitalization.
This rally in BTC was primarily fueled by Wednesday's announcement that Donald Trump confirmed his nomination of Paul Atkins, CEO of Patomac Global Partners, to be the next Chairman of the Securities and Exchange Commission (SEC). This announcement had a positive impact on the crypto market as Atkins is considered a crypto supporter.
Additionally, institutional demand is supporting Bitcoin’s rally so far this week. The Bitcoin Spot ETF saw inflows of $555.8 million on Wednesday, marking the third consecutive day of inflows and bringing this week's total to $1.65 billion, according to Coinglass Exchange Traded Fund (ETF) data. . If this inflow trend persists or accelerates, it could provide further momentum to the ongoing Bitcoin price rally.
Total Bitcoin Spot ETF Net Inflows Chart. Source: Coin Glass
Meanwhile, Bitcoin has gained support from another prominent figure, Vladimir Putin.
“Who can ban Bitcoin? No one. And who can ban the use of other electronic payment methods?” the Russian president said Wednesday at an investment forum in Moscow, according to a Twitter post by Watcher.Guru. Said.
He continued: “Because it's a new technology. And no matter what happens with the U.S. dollar, these tools will evolve in some way as everyone strives to reduce costs and increase reliability.”
signs of concern
According to Lookonchain data, defunct exchange Mt.Gox moved 24,052 BTC worth $2.43 billion to a new wallet as Bitcoin prices soared into six digits. This money could later be sent to exchanges like Bitstamp, BitGo, and Kraken to repay creditors.
Looking at similar movements in the past, on July 30th, Mt. Gox transferred 33,964 BTC worth $2.25 billion, sending the Bitcoin price from $66,700 to $54,000 in 7 days. This may have been one of the reasons for the collapse.
This recent move and the US government's relocation earlier this week could create FUD (fear, uncertainty, and doubt) among traders and contribute to price declines in the coming weeks.
Profit taking is another risk to Bitcoin's price outlook in the short term. Glassnode's weekly report on Wednesday highlights that risk indicators are rising, signaling caution, while realized profits and funding rates are starting to fall, suggesting it's time for a merger.
As shown in the graph below, Bitcoin's realized profit/loss ratio shows heavy profit-taking, suggesting the possibility of short-term demand depletion.
Bitcoin realized profit and loss rate chart. Source: Glassnode
Bitget Wallet COO Alvin Kan told FXStreet in an exclusive interview that he expects a “healthy correction” to occur in the near future, with funding rates normalizing. “This surge has resulted in a greed index reading of 85, indicating 'extreme greed.'” Furthermore, the long position rate in the futures market has reached 0.09%, he said.
He added: “Market volatility is likely to continue to increase, so users should be careful about leveraging futures contracts to avoid liquidation risk due to sudden declines.” Post-correction, the altcoin season is likely to continue, so it is important to focus on sector rotation. ”
Bitcoin price prediction: focus on the $125,000 mark
After recovering from the recent decline from last week, Bitcoin price broke through the ATH level of $99,588 on Thursday, passing the milestone of $100,000. At the time of writing, it is trading at over $102,500.
If BTC continues its uptrend, the rally could widen to test the 141.40% Fibonacci extension level from the November 4 low of $66,835 to the November 22 high of $99,588 at $113,147. A close above this level could extend further upside towards the psychologically important $125,000 level.
The relative strength index (RSI) on the daily chart is 72, above the overbought level of 70. Traders should be careful when increasing their long positions, as the likelihood of a decline in prices has increased. Still, the RSI is still on the upside, so it is likely that the rally will continue and the indicator will remain above the overbought level.
BTC/USDT daily chart
If BTC falls, the correction could be extended to retest the $90,000 support level.
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. 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.
