Why Is Bitcoin (BTC) Price Yet To Cross The $100,000 Milestone?

The performance of Bitcoin (BTC) price has held many spellbound, as they anticipate when it will cross $100,000. However, each time it tries to test the psychological level, BTC slips again, unable to breach the critical resistance.

BTC (Bitcoin) Price Volatility and Investor Behavior

As of this writing, the BTC price was trading at $96,565.41 after peaking at $98,652 within 24 hours. On November 22, the crypto ecosystem felt sure Bitcoin would make history, soaring to $99,357 during trading.

However, it disappointingly plunged to lower figures due to market volatility.

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Some market observers have attributed this elusive $100,000 to nervous investors bent on making quick profits.

These investors could mainly consist of new market entrants. In their assessment, these newbies appear determined to profit from their investments in the world’s leading digital asset.

Mike Novogratz, Galaxy Digital CEO, commented on Bitcoin’s inability to breach the psychological $100,000 in an X post. He said most of the sales come from 2024 buyers who purchased when BTC traded above $56,000.

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This suggests that for Bitcoin to reach $100,000, new buyers must become comfortable taking long positions.

Bitcoin’s rally surged following the electoral win of the Republican Party candidate, Donald Trump. In November alone, BTC price soared 36.57% from just below $70,000 to its current price levels.

The bullish sentiment that saw Bitcoin climb parabolic is attributed to Trump’s pro-crypto stance. Many investors believe the new administration, assuming office on January 20, 2025, could provide regulatory clarity in the industry.

Bitcoin ETF Influence on BTC Price

Despite Bitcoin’s price fluctuation, massive profit-taking from institutional investors remains prevalent in the exchange-traded fund (ETF) market. On November 25 and 26, the Bitcoin ETF market witnessed strong selling pressure and heavy outflows.

Farside Investor data show that $435.3 million and $122.8 million were lost as outflows from the ETF on the days mentioned earlier. This marks a shift from the large inflows of the products registered post-election day.

Generally, spot Bitcoin ETF products hold BTC, which institutional investors use to hedge against Dollar devaluation.

So, selling massive amounts implies these investors spot a profit-making window. With BTC price leaning so close to $100,000, some holders saw it as an opportunity to offload their holdings before price correction set in.

Sustained Optimism from Strategic Purchases

As the broader crypto space keenly watches the price movement of Bitcoin, some anticipate a crash below $80,000. However, market trends signal that the bull run might continue and that Bitcoin could cross the anticipated milestone.

This optimism is fueled by the surprising purchase of Bitcoin by some companies led by MicroStrategy. Marathon Digital, Rumble, and Semler Scientific are also strong buyers of the coin

Despite Bitcoin’s high price, MicroStrategy purchased an additional $5.4 billion worth of BTC. This has fueled optimism that the asset could still soar higher despite the impending selloff scare.

Meanwhile, amid the BTC price rally, Metaplanet, a Japanese investment firm with a newly acquired taste for Bitcoin, plans to expand its treasury.

As previously reported by The Coin Republic, Metaplanet will commence buying more Bitcoin on December 16. Experts say such an announcement can sustain the bull run and push Bitcoin to new heights.