Bitcoin’s historic rally toward $100,000 has hit a roadblock, with the price falling below $95,000 today, sparking debates over the strength of the current bull market.
The decline comes amid intensified profit-taking by long-term holders, who have sold over 461,000 BTC since the latest all-time high over $99,000, according to a recent report by Bitfinex.
According to CoinGlass data, the market experienced over $430 million in liquidations within the last 24 hours, further highlighting the heightened volatility.
Eugene Ng, a prominent crypto analyst, advised caution, stating that while MicroStrategy announced $5.5 billion in new bitcoin purchases today, the market’s inability to break the $100,000 barrier remains a concerning signal.
“Would advise some caution. Saylor bidding $5.5b and us failing to break through $100k isn’t great,” Ng remarked.
Despite these challenges, the market retains strong momentum, driven by robust institutional demand and record inflows into Bitcoin ETFs, which totaled $3.35 billion in the past week, according to Farside Investors’ BTC ETF flow data.
These inflows have contributed to bitcoin’s 130% year-to-date price increase.
While Bitcoin faces headwinds, altcoins are capitalizing on the opportunity.
The Total3 index, excluding Bitcoin and Ethereum, surged 23% last week, its largest rally since April 2021.
Solana led the charge with new all-time highs, signaling a shift in speculative capital and the start of “altseason,” where altcoins often outperform bitcoin.
However, Bitfinex, in its report, warns that the heightened volatility in altcoins, with annualized funding rates exceeding 45%, may lead to sharp corrections.
Retail participation and speculative activity have driven large-cap altcoins to new highs, but this phase often signals the final stages of a bull market.
Despite the short-term challenges, the long-term outlook for Bitcoin remains optimistic.
Analysts suggest that while corrections are healthy for the market, sustained institutional interest could provide the foundation for Bitcoin to recover and eventually break the $100,000 milestone.
The coming weeks will be critical as macroeconomic factors, including inflation data and Federal Reserve commentary, influence market sentiment.
