Bitcoin (BTC) retreated sharply from its all-time high of $103,604, dipping to a low of $94,035 before recovering to climb back above $$97,000 and to its current level. The drop came a day after BTC crossed the historic $100,000 mark, with its market capitalization also shrinking to $1.95 trillion.
The drop was in line with the drop in US equities, with the Dow dropping over half a percent. The S&P 500 and Nasdaq also finished trading lower, while MicroStrategy reported a sharp drop of over 5%.
Markets have been mixed over the past 24 hours, with Ethereum (ETH) and Solana (SOL) registering notable increases of 1% and 2%. However, other altcoins like Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), Hedera (HBAR), and others recorded substantial drops. Other major gainers include Litecoin (LTC), Chainlink (LINK), Toncoin (TON), Polkadot (DOT), Uniswap (UNI), Bittensor (TAO), Artificial Superintelligence Alliance (FET), Arbitrum (ARB), Cosmos (ATOM), and Celestia (TIA). The crypto market cap registered a slight decline of 0.71% and currently sits at $3.59 trillion.
Bitcoin (BTC) Retreats From Record Levels
Bitcoin (BTC) slipped below $95,000, falling sharply from record highs before recovering and returning to its current levels. The drop comes in line with a fall in US equities, with the Dow giving up more than half a percent. The S&P 500 and Nasdaq also ended the day lower, while MicroStrategy reported a drop of over 5%. BTC had surged past $100,000 and set a new all-time high after President-elect Donald Trump chose Paul Atkins as his pick for Securities and Exchange Commission Chair. Atkins is known for his pro-crypto views, and markets are hopeful of a less aggressive approach under his leadership.
BTC has risen almost 50% since Trump’s victory thanks to greater institutional interest and inflows into spot Bitcoin ETFs. Geoff Kendrink from StanChart London stated,
“Roughly 3% of the total supply of bitcoins that will ever exist have been purchased in 2024 by institutional money.”
What Next For Bitcoin (BTC)?
Bitcoin (BTC) rocketed past $100,000 to set a new all-time high of $103.604. Market watchers are now wondering if it can go any higher or if its notorious volatility can drag the price lower. Dan Coatsworth, investment analyst at AJ Bell, called BTC crossing the milestone a “magic moment,” linking it to Donald Trump’s victory. Trump also took to social media to celebrate the milestone. BTC’s latest rally and move past $100,000 was ignited by Trump’s pick for Gary Gensler’s replacement, former SEC Commissioner Paul Atkins, known for his pro-crypto views.
“Clearly there is anticipation that the new administration is going to be somewhat more favorable to crypto than the old administration was. So for the price of Bitcoin, I think that that's what's driven the trend so far [and it will] likely continue into the new year.”
However, some analysts warned investors of BTC’s inherent volatility and wild price swings.
“A lot of people have gotten rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone. It’s volatile, unpredictable, and is driven by speculation, none of which makes for a sleep-at-night investment.”
Trump Picks Former PayPal COO As White House Crypto Czar
President-elect Donald Trump has appointed former PayPal COO David Sacks as the White House AI and Crypto Czar. Sacks will lead policy in crucial tech areas, focus on American competitiveness, free speech, and countering Big Tech bias. Trump posted on Truth Social,
“I am pleased to announce that David O. Sacks will be the White House AI and Crypto Czar. In this important role, David will guide the policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness. David will focus on making America the clear global leader in both areas. He will safeguard free speech online, and steer us away from Big Tech bias and censorship.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) finally hit the haloed $100,000 mark on Thursday, surging to a new all-time high of $103,900, marking a historic moment for the cryptocurrency and the crypto ecosystem. The milestone represents a staggering increase of almost 130% over BTC’s January price of around $45,000. However, the price has retreated considerably after hitting this historic milestone and is currently down by 4.50% and trading just above $98,000. The dip saw BTC drop to a low of $94,035 before rebounding to its current levels. BTC’s latest rally has been fueled by growing institutional adoption and market optimism following Donald Trump’s victory and surging spot Bitcoin ETF inflows.
Institutional interest has been one of the biggest drivers for BTC’s growth. Institutional interest can be gauged by looking at MicroStrategy, already the largest corporate holder of the asset. The Michael Saylor-led firm’s latest acquisition saw the firm purchase 15,400 BTC valued at $1.5 billion at current prices. The latest purchase brings its total BTC holdings to a staggering 402,100 BTC, valued at over $100 billion. Spot Bitcoin ETF inflows have also been crucial in driving the rally. November saw a staggering $6.1 billion in ETF inflows, with BlackRock’s iShares Bitcoin trust accounting for $5.4 billion. Trump’s election victory has also boosted market sentiment due to his pro-crypto stance. The President-elect also chose Paul Atkins as the next SEC Chair, fueling speculation about a crypto-friendly administration under Trump.
The price action shows BTC’s move past $100,000 on Thursday, a day when it witnessed considerable volatility despite hitting a historical milestone. BTC ended the previous week positively, registering an increase of almost 2% on Friday and settling at $97,374. However, it fell back in the red on Saturday, dropping 1.14% to $96,263. Despite sellers attempting to take control, BTC recovered on Sunday to end the weekend in positive territory, up by almost 1% at $97,026. BTC started the current week in the red as sellers attempted to drag the price below the 20-day SMA. As a result, the price fell to a low of $94,404 before settling at $95,812 after a decline of 1.25%.
Source: TradingView
Sellers drove BTC to a low of $93,665 on Tuesday as it briefly slipped below the 200-day SMA. However, buyers countered the selling pressure and BTC recovered, ultimately registering only a marginal decline. Buyers returned to the market on Wednesday as BTC registered an increase of almost 3% to settle at $98,581. BTC created history on Thursday as it surged past the $100,000 mark to set a new all-time high of $103,900. However, it also saw significant volatility as prices plummeted from this level. As a result, BTC dipped to a low of $92,285 before recovering to settle at $97,093, a drop of 1.51%. The current session sees BTC up by 1.35% as buyers look to reclaim $100,000. The asset is currently trading at $98,396.
With the RSI climbing into the overbought zone, a drop was expected in the short term. However, analysts expect BTC to recover and go back above $100,000 during the next few sessions.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is looking to test $4,000 despite facing significant volatility on Thursday despite reaching an intraday high of $3,957. ETH began the week positively, registering a marginal increase on Friday and moving to $3,594. Bullish sentiment intensified on Saturday as ETH registered a rise of just over 3% to settle at $3,705. With sellers active at this level, ETH could only register a marginal increase on Sunday to settle at $3,710. The current week began with a substantial drop on Monday as the price dropped almost 2% to hit a low of $3,559 before settling at $3,645. Sellers drove ETH to an intraday low of $3,504 on Tuesday. However, it recovered from this level to settle at $3,618, ultimately registering a drop of 0.74%.
Source: TradingView
Bullish sentiment returned Wednesday as ETH rallied over 6% to move above $3,800 and settle at $3,844. The price experienced considerable volatility on Thursday as buyers attempted to go past $4,000 and sellers attempted to drag the price towards $3,500. As a result, ETH reached an intraday high of $3,957 and fell to a low of $3,652 before settling at $3,787, a decline of 1.48%. The current session sees ETH up over 3% as it looks to go above $4,000. If buyers can breach this level, ETH could move to $4,200 or higher. On the other hand, if sellers regain control, ETH could drop towards $3,500, where it could find support.
Solana (SOL) Price Analysis
Solana (SOL) is attempting to stage a recovery and push above $250. However, any recovery hinges on whether SOL can move above the 20-day SMA. Despite registering a substantial increase of 2.41% on Friday, SOL fell into bearish territory on Saturday, registering a drop of 2.33% and settling at $237. Sellers retained control on Sunday as SOL registered a marginal decline to settle at $237. Bearish sentiment intensified on Monday as SOL fell below the 20-day SMA after registering a drop of almost 5% and settling at $225. Bearish sentiment persisted on Tuesday as sellers drove SOL to a low of $215. However, it recovered from this level to register an increase of almost 4% and settle at $234.
Source: TradingViewSOL fell back in the red on Wednesday after failing to move above the 20-day SMA. SOL reached an intraday high of $241 before falling back, registering a drop of almost 2% to settle at $229. Sellers attempted to drive SOL below $220 on Wednesday as it plummeted to a low of $222. However, it recovered as buyers propped up the price. As a result, SOL registered an increase of almost 3% and settled at $236. The current session sees SOL up by nearly 2% as buyers try to push the price above the 20-day SMA. If SOL can go above the moving average, it could retest the resistance at $260. On the other hand, if sellers retake control, SOL could drop to $220. If this level is breached, the price could fall as low as $200.
Litecoin (LTC) Price Analysis
Litecoin (LTC) has been incredibly bullish this week, setting its sights on $150. However, it must overcome considerable resistance to reach this level. LTC’s rally began on Friday when it registered a substantial increase of nearly 10% to go above $100 and settle at $104. Buyers attempted to drive the price back below $100 on Saturday but were unsuccessful as LTC remained above $100, settling at $102 after a drop of 1.90%. Bullish sentiment intensified considerably on Sunday as LTC surged almost 17% to settle at $119. Buyers retained control on Monday, pushing LTC up nearly 11% to $132. LTC also reached an intraday high of $139 as buyers set their sights on $150.
Source: TradingView
Despite a strong showing on Sunday and Monday, LTC fell into the red on Tuesday as sellers drove it to an intraday low of $121. LTC made somewhat of a recovery from this level to settle at $130, ultimately registering a decline of 1.41%. Volatility persisted on Wednesday as LTC fell to $121 again. However, buyers took control, allowing LTC to register an increase of 2.21% and settle at $133. LTC saw a significant uptick in volatility on Thursday, dropping to an intraday low of $125 and rising to an intraday high of $147 before settling at $135 after an increase of 1.44%. The current session sees LTC down by just over 1% as sellers look to drive the price towards $100.
Cardano (ADA) Price Analysis
Cardano (ADA)’s rally has stalled this week as it failed to establish itself above $1.30, declining considerably to slip below $1.20 during the current session. ADA has been bullish since the middle of last week, recovering from an intraday low of $0.875 on Tuesday. By Friday, it was back above $1 and trading at $1.07. Buyers retained control over the weekend as ADA registered a marginal increase on Saturday before rising almost 7% on Sunday to go above $1.10 and settle at $1.15. Sellers attempted to drive ADA below $1 on Monday as it plummeted to an intraday low of $1.05. However, it recovered from this level to register an increase of 4.43% and settled $1.20.
Source: TradingView
ADA surged to an intraday high of $1.32 on Tuesday as it began the session on a bullish note. However, buyers lost momentum after reaching this level. As a result, the price fell back to $1.19 as sellers dragged the price lower. Sellers retained control on Wednesday as ADA faced considerable volatility, with the price ultimately registering a marginal decline. Bearish sentiment increased slightly on Thursday as ADA dropped 2.27% to $1.16. The current session sees ADA up by almost 1% as buyers attempt to reverse the recent bearish sentiment.
Arbitrum (ARB) Price Analysis
Arbitrum (ARB)’s rally has stalled around $1.15 as buyers struggle to build momentum. ARB started the current week on a very positive note despite facing significant volatility, with the price dropping to an intraday low of $0.89 and rising to an intraday high of $1.09 before settling at $1.02. Volatility persisted on Tuesday as ARB registered an increase of 1.87% to settle at $1.04 despite considerable selling pressure. Bullish sentiment registered a substantial increase on Wednesday as ARB registered an increase of almost 9% to go above $1.10 and settle at $1.13.
Source: TradingView
However, with sellers active at upper levels, ARB fell back on Thursday, dropping just over 3% to a low of $1.07 before settling at $1.10. The current session sees ARB up by 3.28% and trading at $1.14 as buyers look to push it above $1.15.
Algorand (ALGO) Price Analysis
Algorand (ALGO)’s rally halted abruptly this week after it failed to establish itself above $0.50. ALGO entered the current week positively, surging almost 37% on Friday and settling at $0.441. The price encountered significant volatility on Saturday, falling to an intraday low of $0.397 and rising to an intraday high of $0.48 before settling at $0.443. Bullish sentiment returned on Sunday as ALGO registered a substantial increase of 9.62% and settled at $0.486. Buyers retained control on Monday as ALGO rose above $0.50 and settled at $0.504 after an increase of 3.68%.
Source: TradingView
ALGO surged to an intraday high of $0.613 on Tuesday as buyers set their sights on $0.60. However, ALGO lost momentum after reaching this level and plummeted back to settle at $0.449, registering only a marginal increase. Buyers attempted to take the initiative on Wednesday as ALGO reached an intraday high of $0.539. However, they lost momentum after reaching this level, allowing sellers to take over. As a result, ALGO dropped by 5.53% and settled at $0.478. Sellers retained control on Thursday as the price fell by 6% to $0.450. The current session sees ALGO marginally down as buyers and sellers struggle to establish control.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
