Bitcoin (BTC), which has been on a steady upward trajectory for the last few months, is now experiencing a slight pause as attention turns to alternative coins. The price of Bitcoin (BTC) is currently trading at $99,540 – 3.8% lower than its previous record. Questions are being raised as to whether this trend will continue and if there could be a possible correction before the end of the year.
Investors rush to Ethereum and XRP
Chris Newhouse is the director of Research at Cumberland Labs. pointed out that while strong institutional buying pressure persists—particularly from companies like MicroStrategy, which continues to accumulate Bitcoin—there is a noticeable shift in capital flows.
Newhouse stated that the crypto-ecosystem is experiencing an increase in a “diversification of capital flows” Participants from institutions and non-institutional sources are both welcome.
As Bitcoin stabilises, the investor’s interest in other digital assets is increasing, such as Ethereum (ETH), and XRP. These had lagged behind Bitcoin previously.
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After the win of Donald Trump as President-elect, which has been praised for his crypto advocacy, there are now expectations that US regulation will be more favorable. It has led to a massive increase in the XRP priceThe monthly increase has been 400%.
The record net monthly inflows of Bitcoin and Ethereum also reflect this optimism exchange-traded funds In November (ETFs), which respectively reached $6.5 billion. Bloomberg data shows the number of daily Ether subscriptions reached an all-time record on last Friday.
$2 Billion Silk Road Bitcoin Moved To Coinbase
There has been an increase in the market for options that protect against a Bitcoin’s downside at later expirations this month. Meanwhile, BTC futures Bitcoin’s price has remained relatively stable, despite its recent surge to $99,000.
Vetle Lunde is the head of K33’s research. According to him, data from on-chain shows that those who bought BTC between $55,000 and $70,000 are actively making profits. “Profit-taking has been particularly intense with BTC trading north of $90,000,” Lunde remarked.
Jake Ostrovskis a Wintermute OTC trader, noted that “the market has taken a pause over the last 10 days as Bitcoin sits just under $100,000. Volatility levels have compressed slightly, with Bitcoin in the 64th percentile and Ether significantly higher at the 81st.”
This compression of volatility suggests that traders are cautious as they evaluate the future moves in the BTC markets. A new wave lower support levels could be tested. price actionThis can put at risk the achievement of the $100,000 mark by the year’s end.
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Recent developments have added to the unease in the market. reported NewsBTC announced on Monday that Coinbase had received almost $2 billion of BTC, previously confiscated at the Silk Road market by US authorities.
These moves are often a source of speculation for traders. For example, similar measures taken by the US to sell off its massive holdings in BTC contributed to the downward trend in BTC during the second and third months, when BTC declined over 20%.
BTC, at the moment of this writing, is currently trading at $94,480. This represents a 0.5% decrease over the previous 24 hours.
Featured Image from DALL E, Chart by TradingView.com
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Source: www.newsbtc.com
