Bitcoin Investors Profit as BTC Hits $100k All-Time High
Bitcoin investors have begun cashing out their profits after the cryptocurrency soared to a record-breaking $104,000, according to data from CryptoQuant. The long-term holders of Bitcoin saw their spending output profit ratio (LTH-SOPR) increase as the digital currency crossed the $100,000 mark, indicating that sellers made four times the amount they initially invested in acquiring their Bitcoin.
Euphoria meets macroeconomics
Following Bitcoin’s milestone achievement, investors turned their attention to upcoming U.S. economic data that could impact the cryptocurrency’s bullish momentum. The release of the jobs report data on Dec. 6 may influence the Federal Reserve’s monetary decisions, with traders anticipating a 25 basis point cut on Dec. 18. Lower interest rates could lead to more liquid markets, potentially directing capital flows towards Bitcoin and other digital assets. However, Bitfinex’s head of derivatives, Jag Kooner, warned that this could also create downward pressure on BTC.
Cautious Bitcoin optimism
Amid the economic data forecasts, B2BINPAY CEO Arthur Azizov expressed the need for a market correction in Bitcoin, especially after its surge past $100,000. Azizov suggested that a retracement below $90,000 would be beneficial for Bitcoin, considering the significant price increase following Donald Trump’s re-election.
According to Azizov, a pullback in Bitcoin’s price is expected by the end of the year, with a likely consolidation around $100,000 before retracing to lower levels, potentially settling near $85,000 in the months that follow. As investors navigate the volatile cryptocurrency market, staying informed about economic indicators and expert opinions can help make informed decisions regarding their investments.
