forecasts Bitcoin to top $100,000 before year's end, according to Bitfinex predictions.
In the world of cryptocurrency, the week of December 3, 2024, was marked by significant fluctuations in Bitcoin's value.
On that fateful day, Bitcoin soared past $97,000 before pulling back to hover above $95,000. This surge followed news of the U.S. government moving 10,000 BTC, a transfer that rattled markets. However, it's important to note that no specific institution was documented as selling Bitcoin on that date, and the information about the market-relevance of such a sale is not available from the provided sources.
The ongoing consolidation phase is critical during times like these, serving as a crucial period for absorbing profit-taking and realigning market demand. Bitfinex warned of heightened volatility, citing profit-taking from hodlers and fluctuations in BTC-ETF activity as potential factors.
The U.S. government's transfer of 10,000 BTC was linked to the Silk Road, according to QCP Capital, and they attribute the subsequent correction in Bitcoin to this news. This transfer comes after the amount distributed before the March 2024 peaks was 934,000 BTC.
Historically, December has been a strong month for Bitcoin during halving years, with average gains of 38.9%. This favourable seasonal trend, coupled with the potential for Bitcoin to reach six-figure territory, has analysts bullish on the digital currency's prospects.
However, the options markets are increasingly favouring puts in near-term Bitcoin contracts, signalling bearish sentiment. This bearish sentiment is further supported by the number of coins held by short-term speculators, which is nearing a cyclical peak of 3,282,000 BTC.
Bitfinex noted that continued selling pressure necessitates sustained demand to prevent further price declines. Meanwhile, long-term holders reduced their balances by 508,990 BTC last week, a significant reduction that could indicate a shift in market dynamics.
The lack of an altcoin season was explained by CryptoQuant CEO Ki Young Ju, who attributes it to the ongoing bear market in the altcoin market. In contrast, Bitcoin closed November with a 37.3% gain, a strong performance that has kept it at the forefront of the cryptocurrency market.
In other news, Benjamin Cowen of ITC Crypto predicted a significant correction for altcoins before any substantial growth. Last week, $135.1 million was withdrawn from spot ETFs, another indication of the cautious approach investors are taking in this volatile market.
As we move forward, it's clear that the cryptocurrency market remains unpredictable, with Bitcoin leading the charge. Whether the digital currency can maintain its momentum remains to be seen, but one thing is certain: the ride is far from over.
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