After crossing the much-awaited milestone of $100K and reaching an all-time high (ATH) of $103,551, Bitcoin has slipped back to $97K. This decline can be primarily attributed to significant selling pressure, but there’s more to it.
A wise man once said, “after we hit $100k, it’s smooth sailing to $1.0M.”
Global #Bitcoin FOMO begins now. Plan accordingly. pic.twitter.com/ZviNWEWFLy
— Samson Mow (@Excellion) December 5, 2024
Bitcoin Market Trends
On December 5, Bitcoin crossed the $100K milestone and achieved an ATH of $103K. However, at the time of writing, Bitcoin has slipped back to $97,272, marking a 1.32% dip in the past 24 hours. Its 24-hour trading volume surged by a remarkable 97% to $154.08 billion. The market cap of this seventh-largest valuable asset, which was slightly over $2 trillion yesterday, has decreased by 1.52% to $1.92 trillion.
Courtesy: Coinmarketcap
Selling Pressure and ETF Outflows Causing Bitcoin’s Decline
One of the primary factors behind this dip is selling pressure. The Relative Strength Index (RSI 14) stands at 63, indicating a ‘Neutral’ trend. Meanwhile, the Simple Moving Average (SMA 10) is at 96,769, signaling a ‘Buy’ action. These technical indicators present an optimistic yet mixed outlook, suggesting that further corrections might be forthcoming.
Following yesterday’s record price surge, traditional investors capitalized on gains, which lead to an outflow of $51.32 million from US Bitcoin spot ETFs. Grayscale’s Bitcoin Trust (GBTC) recorded the highest outflow at $148.78 million, while Grayscale Bitcoin (BTC) saw significant inflows of $95.35 million.
Ripple Effect on Crypto-Related Stocks
The Bitcoin plunge has also impacted other crypto-related stocks. Coinbase (COIN), which surged by 5% yesterday, fell by 3%, closing at $320.57. Similarly, MicroStrategy’s stock (MSTR), which jumped over 8% due to its Bitcoin reserve strategy, has dropped by 4% today, closing at $386.40.
