Key Points
- Bitcoin’s price is increasing, with the potential to reach $100K as profit-booking decreases.
- Despite political turmoil in South Korea, major players continue to invest in Bitcoin.
After a period of stability around the $96,000 mark, the price of Bitcoin is on the rise, gaining 1.5% and heading towards $100,000 and beyond. Over the last week, Bitcoin’s price has shown minimal fluctuation, remaining within the $92,000 to $98,000 range.
As Bitcoin approached the $100,000 threshold, it encountered strong selling pressure from long-term holders. However, data from Glassnode indicates a significant decrease in profit booking, with daily realized profits sent to exchanges falling to $277 million per day.
Decrease in Profit Booking
This figure represents a steep 42% drop from the November 16 peak of $481 million. This suggests that traders are holding onto their positions rather than cashing in their profits. Analysts interpret this as a positive sign, indicating that Bitcoin is entering a consolidation phase before a potential explosive rally.
The lack of profit-taking and the narrow trading range suggest that investors are gearing up for the next significant price movement, with many keeping their eyes on the $100K milestone.
However, Bitcoin experienced some volatility on Tuesday due to political unrest in South Korea. President Yoon Suk Yeol briefly declared martial law before retracting the decision. Bitcoin’s price saw a sharp disparity across exchanges, dropping below $65,000 on South Korea’s Upbit due to liquidity constraints, while maintaining a price near $95,000 on Binance.
Continued Investment Despite Volatility
Despite Bitcoin’s price volatility, major players have continued to invest. Earlier this week on December 2, MicroStrategy announced the purchase of 15,400 Bitcoin for $1.5 billion at $95,976 per Bitcoin. On the same day, Bitcoin miner MARA Holdings, a publicly listed company, announced a proposed private offering of convertible notes worth $850 million. The funds raised will be used to acquire additional Bitcoin.
Furthermore, the Bitcoin community is eagerly awaiting the Microsoft shareholders’ vote on whether to include Bitcoin on the company’s balance sheet. Last weekend, Michael Saylor shared a blueprint on how Microsoft could add $5 trillion to shareholders’ wealth by investing all of the treasury into Bitcoin and raising debt to buy more Bitcoin.
There are also rumors about the possibility of the US establishing a strategic Bitcoin reserve. This would contrast sharply with former President Trump’s firm stance on the US dollar as the dominant global currency, as noted by TD Cowen analyst Jaret Seiberg. “It is quite possible Trump will still tout a Bitcoin reserve on social media or mention it in a speech. That is distinct from using the significant political capital that would be required to make it happen,” the analyst added.
