Last week, the price of BTC was approaching $100K per coin amid concerns of a correction. Taking profits on Bitcoin was a matter of time, especially when the currency was approaching a symbolic goal that a few years ago seemed unlikely. Bullish optimism remains, but breaking $100,000 seems like it won’t be easy.
The latter is assumed by the CEO of the Independent Reserve exchange, Adrian Przelozny. In a consultation with the Bloomberg portal, the executive agrees that investors see $100K as a difficult goal to break in the immediate term. In that sense, many of them prefer to collect profits before the currency faces several rejections at that barrier.
During last week’s high of $99,662, investors knew they were in a risk zone. Hence it was a matter of time before they found an argument to pick up. “People were looking for excuses to collect some profits,” he says.
Przelozny adds that this is a short-lived scenario. Thus, the price of the currency will not take long to project itself again until it overcomes that psychological barrier. “We remain very confident that the current bullish market sentiment will continue through 2025,” he commented.
The price of Bitcoin is on its worst streak since Donald Trump won the election. Source: Bloomberg
Will Bitcoin Profit Taking be short-lived?
Bitcoin investors’ decision to take profits appears to be a short-lived phenomenon. At least the latter is what experts assume. In 2025, events of great relevance for the future of cryptocurrencies will occur. These include the end of the SEC war, new regulation, and the likely addition of Bitcoin to US strategic reserves.
Simply put, the bullish momentum remains extremely strong as the calendar moves towards Donald Trump’s inauguration. On that same date (January 20) the Trump administration will take immediate control of the Securities and Exchange Commission (SEC). As you can see, the bullish momentum could be renewed from the start of the year, or probably before.
All these elements suggest that the current profit taking of Bitcoin investors is a short episode. It is worth mentioning that much of the fall is due to liquidations by long-term holders. This means that these same wallets will soon return when they consider that the price has dropped enough.
The announcement of future tariffs on some of the United States’ main trading partners caused enormous concern in the markets. The pressure seems to be felt in both stocks and cryptocurrencies. This would be the excuse that investors were looking for to liquidate part of their BTC. Likewise, it will surely also be the excuse for some large capitals to buy at discount prices and prepare for 2025.
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