The price of Bitcoin has declined after soaring past the $100,000 benchmark for the first time.
The flagship crypto asset traded above $103,000, earlier this week. However, that price was short-lived, as selling pressure built shortly after it reached the milestone. The crypto asset traded as low as $90,983. The sudden drop caused over $1 billion in liquidations across the crypto market, with approximately $810 million coming from long positions, according to data from CoinGlass.
Despite this pullback, Bitcoin demonstrated resilience bouncing back to $98,807. Interestingly, while altcoins experienced slight declines during Bitcoin’s drop, the broader crypto market showed notable resilience. Major tokens such as Solana recovered to $237, Ethereum to $3,780, and Dogecoin to $0.42, bouncing back quickly after the dip and stabilizing alongside Bitcoin.
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Following the BTC price decline, several analysts attributed it to profit-taking, as traders seized the opportunity to cash in on the psychological $100,000 benchmark. Many noted that the $100k price was marked as a prime selling point for many investors. While some traders view the recent drop as a normal market adjustment, others caution that more declines could occur as additional profit-taking unfolds.
As bitcoin lingers below the $100K mark, opinions remain split on its future direction. Some predict a swift rebound driven by steady demand, while others warn that more sell-offs could challenge key support levels in the coming days.
However, Bitcoin seems to remain on a bullish trajectory, following Trump’s victory in the recently concluded US election. Trump who has been a strong advocate of the crypto asset, has promised to potentially set the stage for America to become a global crypto hub, also promised to bring in friendly regulators and put an end to tough enforcement actions taken against the sector under President Biden.
Investors are betting on reduced regulatory hurdles and increased support for blockchain innovation. The momentum has sparked hopes for an altcoin rally, echoing past trends of volatility and rapid gains.
Also, Trump’s nomination of Paul Atkins, a known crypto advocate, for SEC Chairman has further bolstered market sentiment. Atkins has the backing of industry leaders, with his appointment is seen as a potential game-changer for U.S. crypto regulation.
Despite Bitcoin’s sudden price retracement, bullish Projections Market analysts and institutions are now setting ambitious price targets for the crypto asset. Several analysts have predicted the price of the Bitcoin to reach $120,000 to $130,000. Bernstein Research recently revised its 2025 forecast from $150,000 to $200,000, citing increased institutional appetite and growing global demand.
