Anticipated Bitcoin Value Soaring Beyond $100,000 According to Bitfinex by End of Year
Bitcoin, the world's largest cryptocurrency, closed November with a significant gain of 37.3%. However, the beginning of December has seen a shift in sentiment, with experts noting an increase in favour of puts in near-term Bitcoin contracts, signalling bearish sentiment in the options markets.
This bearish trend may be attributed to reports of the U.S. government moving 10,000 BTC (approximately $963 million at the time), which is believed to be linked to the now-defunct Silk Road. The transfer of these Bitcoins rattled the markets, causing a retrace in Bitcoin's price.
Despite this correction, Bitfinex highlights that the potential for Bitcoin to reach six-figure territory in December is due to favourable seasonal trends. Historically, December has been a strong month for Bitcoin during halving years, with average gains of 38.9%.
However, Bitfinex also warns of heightened volatility in December and notes that continued selling pressure necessitates sustained demand to prevent further price declines. The number of coins held by short-term speculators is nearing a cyclical peak of 3,282,000 BTC.
In contrast, long-term holders have been reducing their balances. Last week, they reduced their holdings by 508,990 BTC. Additionally, $135.1 million was withdrawn from spot ETFs last week.
The analysts add that the amount of Bitcoin distributed before the March 2024 peaks is below the 508,990 BTC recently reduced by long-term holders.
Meanwhile, CryptoQuant CEO Ki Young Ju explains the lack of an altcoin season. The ongoing consolidation phase is critical for absorbing profit-taking and realigning market demand.
In other news, Benjamin Cowen of ITC Crypto predicts a significant correction for altcoins before any substantial growth. Asia Color reports that Bitcoin soared past $97K before pulling back to hover above $95K, following the news of the U.S. government moving 10,000 BTC linked to Silk Road.
As always, it's crucial to stay informed and make informed decisions when investing in the volatile world of cryptocurrencies.
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