Bitcoin’s price has bounced back to $98,230.02 after experiencing a weekend dip that saw it fall below $96,000. This drop was expected as traders took profits following last week’s surge to nearly $100,000. Other cryptocurrencies like XRP and DOGE also saw losses of more than 5%, while ETH, SOL, and ADA fell between 2%-5%. However, all of these coins have since recovered some of their losses and posted gains in the past 24 hours. The CoinDesk 20 Index, which provides a broad view of the digital asset market, rose by 1.7% thanks to increases in smaller altcoins like AVAX and LINK.
Crypto-tracked futures experienced over $500 million in liquidations on both long and short positions due to the market volatility. Despite this, traders do not seem overly concerned about the pullback. Jeff Mei, COO at crypto exchange BTSE, noted that Bitcoin’s dominance in the market indicates strong institutional demand, especially for ETFs. He also mentioned the possibility of institutions investing in Ethereum ETFs and Solana once they are approved. With the stock market seeing steady gains and discussions about pro-crypto policies with the Trump transition team, it is likely that the current rally will continue into 2025.
Brokers Bernstein and Canaccord have raised their price targets for MicroStrategy, a company that has announced plans to buy $42 billion worth of bitcoin over the next three years. Bernstein predicts that MicroStrategy will own 4% of the world’s bitcoin supply by 2033, up from its current 1.7%. They believe that bitcoin is in a structural bull market supported by favorable regulation, institutional adoption, and macroeconomic factors.
The chart of the day shows the difference between intraday spot buying and selling volumes for bitcoin, with net buying volume turning negative near record highs. This suggests profit-taking among investors, which may be contributing to bitcoin’s struggle to surpass $100,000.
In other news, Koreans have shown increased interest in cryptocurrencies like DOGE, XRP, and XLM following Trump’s win and are now turning their attention to tokens like SAND. Additionally, Tether is reportedly in talks to support Cantor Fitzgerald’s planned bitcoin lending program, according to the Wall Street Journal.
Overall, despite the weekend dip, the crypto market remains resilient, with positive indicators pointing towards continued growth and adoption in the coming years.
