Bitcoin (BTC) is recovering, but breaking through $100,000 by the end of the year is not expected to be easy.
The leading cryptocurrency Bitcoin started the new week by recovering after falling to $80,000 last week.
BTC rose to $88,000 as expectations rose that the Fed would cut interest rates by 25 basis points in December. However, surpassing $100,000 by the end of the year is unlikely to be easy.
At this point, analysts predict that it will not be easy for Bitcoin to surpass the $100,000 mark by the end of the year due to supply-demand pressure and whale selling.
Jasper De Maere, an over-the-counter (OTC) trader at Wintermute, said that while Bitcoin and altcoins are recovering, consolidation is currently possible for the market.
“Although the recovery continues amidst the deteriorating macro environment, positions have moved out of the overleveraged zone and the market has finally entered a stable sideways phase.
Funding rates have returned to neutral-to-bearish territory, futures leverage has decreased significantly, and spot trading volume has increased.
A gradual recovery is now more likely than a sudden one.”
While Wintermute trader expects consolidation, Paul Howard, senior analyst at trading firm Wincent, also said the upside for Bitcoin is limited.
At this point, Paul Howard said that BTC’s rise may be limited below $100,000 as year-end dynamics put pressure on prices.
“Recent whale selling and reduced liquidity leading to liquidations of ETF arbitrage positions have resulted in an increase in ETF selling volume.
With the annual year-end accounting and reporting period overlapping, institutions tend to reduce their positions, making it difficult for market sentiment to recover quickly.
Therefore, it seems unlikely that Bitcoin will reach $100,000 before the first quarter of 2026.
However, the foundations for the rise in Bitcoin and altcoins over the next 12 months have already been laid.”
*This is not investment advice.