Bitcoin’s ascent toward the anticipated $100,000 milestone has begun to lose steam, leaving some of the cryptocurrency’s strongest proponents questioning whether the journey will continue as expected. While institutional buying pressure, especially from notable players like MicroStrategy, remains robust, the broader crypto market is seeing a shift in capital flows. There is a growing diversification of investment across the crypto ecosystem, with both institutional and non-institutional participants exploring assets beyond Bitcoin.
As Bitcoin’s price stalls, other digital assets such as Ether and XRP are gaining attention, especially since they had lagged behind Bitcoin during its recent price surge. This shift is also partly fueled by the increasing interest in the cryptocurrency market following President-elect Donald Trump’s advocacy for crypto, which has led to expectations of more favorable U.S. regulations for the sector.
Both Bitcoin and Ether exchange-traded funds (ETFs) saw record inflows in November, with Bitcoin ETFs attracting $6.5 billion and Ether ETFs receiving $1.1 billion, according to Bloomberg data. Furthermore, Ether ETF subscriptions hit an all-time high on Friday. Despite this positive momentum, there are signs of a slight pullback, with a week of sales and derivative traders using ETF demand as a gauge for market direction. Early Bitcoin ETF investors might now be looking to rebalance their portfolios, particularly after significant profits from the recent rally.
In the crypto options market, more downside protection is being observed for Bitcoin, particularly for contracts with later expiries this month. Bitcoin futures have also seen more moderate leverage, with activity remaining subdued after the digital asset surpassed the $99,000 mark. On-chain data shows that traders who bought Bitcoin in the $55,000-$70,000 range are now taking profits, with particularly intense selling when Bitcoin’s price exceeded $90,000. This concentration of profit-taking within a single price range suggests that traders are actively responding to current price levels.
Bitcoin’s open interest in both options and futures contracts has remained relatively low following large liquidations during its recent rally. Additionally, concerns arose when blockchain analysis firm Arkham reported that approximately $2 billion worth of Bitcoin forfeited from the Silk Road website had been moved from U.S. government wallets to the Coinbase exchange. Such movements often lead to market jitters, with traders speculating that a large influx of Bitcoin onto the market could drive prices down.
As of 9:33 a.m. Tuesday in Singapore, Bitcoin’s price stood steady at $95,734, following its peak of $99,728 on November 22. The uncertainty surrounding Bitcoin’s price trajectory has left investors and analysts closely monitoring the evolving landscape of the cryptocurrency market.
