Bitcoin price today: $98,400
Bitcoin price was hovering around $98,400 on Wednesday after falling 4.47% since Monday. Microsoft shareholders on Tuesday rejected a proposal to add Bitcoin to the company's balance sheet. Increasing institutional capital inflows, Ray Dalio's support for BTC, and increased Bitcoin holdings by Mara Digital and Riot Platforms are providing some support.
Bitcoin (BTC) price has rebounded slightly after falling 4.47% so far this week, trading around $98,400 on Wednesday. Bitcoin is showing mixed signals, and investors' indecision is clear. Microsoft shareholders on Tuesday rejected a proposal to add Bitcoin to the company's balance sheet, despite increased inflows from institutional investors, Ray Dalio's support for BTC, and support from Mara Digital and Riot Platforms. The increase in Bitcoin holdings is a sign of optimism.
Bitcoin faces backlash from Microsoft shareholders
Bitcoin has been on the downside for most of this week, falling 4.5% by Tuesday and hitting a low of $94,150 on Monday.
The recent surge above 100,000 caused traders to “build up leveraged longs, only to be quickly punished as prices reversed in liquidation cascades,” according to a K33 research report.
Monday's Bitcoin liquidation was compounded by Tuesday's announcement that Microsoft shareholders rejected a proposal to add Bitcoin to the company's balance sheet.
MicroStrategy CEO Michael Saylor presented the proposal to Microsoft's board last week, explaining why the tech giant should buy Bitcoin. However, Microsoft shareholders rejected the proposal in a vote Tuesday. The board described investing in Bitcoin as an “unnecessary risk” that is not consistent with the company's strategy.
Around the same time, Google's announcement of its latest quantum chip, Willow, raised concerns about the potential for compromising the integrity of Bitcoin and crypto-encryption networks.
The event stimulated discussion about the need for quantum-resistant cryptography and highlighted the urgency for the crypto community to address vulnerabilities posed by advances in quantum technology.
“With 105 qubits, Google's Willow chip delivered unprecedented computational power, solving problems in minutes that would take traditional supercomputers billions of years. , experts agree that Willow's current capabilities do not pose an imminent threat to Bitcoin's cryptographic security,” Ryan Lee, principal analyst at Bitget Research, told FXStreet.
Bitcoin inflows to institutional investors remain strong
Despite the adverse events, Bitcoin institutional demand remained strong on Tuesday. Bitcoin spot exchange-traded funds (ETFs) saw inflows for the second consecutive day this week, hitting $438.9 million on Tuesday, according to Coinglass. This represents a consistent positive inflow since November 27th. If inflows of this magnitude continue, demand for Bitcoin will increase, leading to a price recovery.
Total Bitcoin Spot ETF Net Inflows Chart. Source: Coinglass
Additionally, Marathon Digital announced that it acquired 11,774 BTC worth $1.1 billion during the same period at an average price of $96,000 per Bitcoin. The company currently holds 40,435 BTC worth $3.9 billion.
MARA used the proceeds from the issuance of zero-coupon convertible notes to acquire 11,774 BTC for $1.1 billion, or approximately $96,000 each. #bitcoin And it achieved a BTC yield of 12.3% QTD and 47.6% YTD. As of December 9, 2024, the company held 40,435 BTC, with a current value of… pic.twitter.com/2uvnrhbxaP
— Mara (@MARAHoldings) December 10, 2024
Riot Platforms announced on Wednesday a $500 million private placement in convertible senior notes for the purchase of Bitcoin and general corporate purposes worth $68.45 million, according to Lookonchain data. Obtained 705BTC. If institutional demand for Bitcoin continues or increases, it could lead to a price recovery.
On-chain data is provided by Riot Platforms (@RiotPlatforms) got 705 $BTC($68.45 million) in the last three hours.
On December 9, Riot announced plans to privately offer $500 million in convertible notes primarily to: #bitcoin Acquisitions and general companies… pic.twitter.com/jkjf9KkP4s
— Lookonchain (@lookonchain) December 11, 2024
Finally, Ray Dalio, founder of Bridgewater Associates, endorsed BTC during the Bitcoin MENA and Abu Dhabi Financial Conferences.
“I want to move away from debt assets and have hard money like gold and Bitcoin,” Dalio said.
Bitcoin price prediction: BTC is showing signs of weakness
Bitcoin price has fallen 4.47% this week through Tuesday. As of this writing Wednesday, it is hovering around $98,400.
Traders should be cautious as the relative strength index on the daily chart is showing signs of weakness. The recent upward trend in Bitcoin price since mid-November reflects the decline in RSI levels over the same period, indicating that bullish momentum is weakening. RSI is hovering around 60. A daily close below the neutral level of 50 would indicate increasing bearish momentum.
If BTC continues its decline and closes below the $90,000 support level, losses could widen towards the next support level at $85,000.
BTC/USDT daily chart
On the other hand, if BTC continues its recovery and closes above $104,088, it could extend the rally towards an all-time high of $119,510. This level coincides with the 141.4% Fibonacci extension line from the November 4 low of $66,835 to the 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. 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.
