Bitcoin (BTC) has recently achieved a new record high, reaching $93,477, as it inches closer to the much-anticipated $100,000 milestone. This upward trend has been characterized by limited profit-taking, which gives rise to optimism regarding the potential for further price increases.
According to a report from Glassnode, the momentum behind Bitcoin ’s current price rally is primarily fueled by strong on-demand buying and increasing interest from institutional investors. The political landscape, particularly the recent success of Republican presidential candidate Donald Trump, has also contributed positively to the market’s sentiment toward digital assets.
The report indicates that an impressive over 95% of Bitcoin ’s circulating supply is currently profitable for holders. Despite this robust figure, profit-taking has been significantly subdued in this cycle compared to previous all-time highs. Historical data suggests that during earlier ATH cycles, profit realization averaged between $30 billion and $50 billion monthly. This cycle, however, has recorded only approximately $20.4 billion, suggesting that many investors are holding out for even higher prices.
Moreover, Bitcoin ’s current trading price of $91,199 lies just below a critical upper price band of $94,900. Analysts observe that, during ATH phases, Bitcoin ’s price tends to test these upper bands as new investors enter the market at elevated price points. Monitoring movements between these price bands can provide insight into potential selling points for existing holders.
Nonetheless, as Bitcoin approaches the $100,000 threshold, many in the industry emphasize the necessity of eliminating excess leverage in the market. Recent data shows a significant liquidation of crypto contracts, exceeding $718 million within 24 hours, impacting over 200,000 traders. This liquidation occurred nearly evenly between long and short positions, suggesting a lack of decisive trading advantage amidst the prevailing bullish sentiment.
Despite varying predictions for Bitcoin ’s future, some analysts remain optimistic. There are ambitious forecasts suggesting that BTC could soar to $200,000 within the next 18 months, and even reach $1 million under a Trump administration. Currently, Bitcoin is trading at $88,112, reflecting a 1.9% decline over the past 24 hours, according to CoinMarketCap data.
