Bitcoin (BTC) moves away from $100,000a figure that seemed destined to reach less than a week ago.
At the time of this publication, as can be seen in the CriptoNoticias Price Calculator, each BTC trades for $91,700 on the main exchanges.
Bitcoin ETFs traded in the US market have contributed to the price drop in recent hours.
As can be seen in the following graphicprovided by the company SoSoValue, yesterday, November 25, Bitcoin ETFs had a negative flow of money amounting to $438 million.
Spot ETFs are backed by the underlying asset (in this case, bitcoin). That means that ETF management companies hold units of BTC in their treasuries to give value to investment funds. When supply exceeds demand, they can then sell these BTC to redeem investors. This causes a drop in the price of the asset.
For the rest of the weekin general, no expectations of a big price rally for bitcoin. The Colombian analyst, Juan Rodríguez, director of ‘Bitcoin and Cryptos’, comment:
«For this week things are complicated with the PCE report on Wednesday and the FOMC minutes on Thursday. Both data are expected to act bearishly for risk markets and bitcoin. This is due to potential projections of sustaining high interest rates without further cuts for additional time than expected by the market.
Juan Rodríguez, market analyst.
Added to all this is that many investors and traders have chosen to take profits around $100,000which leads to falls in the price. Financial company specialists say G.S.R.: “Cryptocurrency prices remain volatile amid profit-taking by traders.”
In the medium and long term, however, expectations remain mostly bullish. for bitcoin. CriptoNoticias has already reported that analysts at the investment company, Bernstein, think that BTC will reach $200,000 next year.
Marija Matic, a finance specialist, emphasizes the scarcity of bitcoin. “Remember that only 21 million BTC will ever exist and that a significant portion of these coins have already been lost or remain inaccessible,” says.
Complement the latter with data to which you have access:
“According to a 2023 report by Unchained Capital, up to 3.8 million BTC may have been permanently lost due to forgotten passwords, hardware failure, or unfortunate events such as the death of the owner without proper succession planning. Some estimates even put the total number of BTC lost at 6 million or more, representing more than 30% of the total supply. And, as time goes on, the amount of BTC lost will increase and further reduce the available supply. “This scarcity will continue to put upward pressure on the price of bitcoin, making it even more valuable to those lucky enough to own it.”
Marija Matic, finance specialist.
Given such bullish expectations in the long term—to which the author of this informative column adheres—it may be thought that Each price drop is one more opportunity that bitcoin provides to accumulate more sats.
Strategies such as DCA (dollar cost averaging) can be useful for those who wish to have more BTC in their wallets, waiting for greater revaluations.
But… Won’t it be too late to buy bitcoin? Well, that depends on the investor’s time horizon. If, like Michael Saylor, someone believes that BTC could be worth millions in the coming decades, then buying bitcoin at just under $100,000 would be “a bargain.”
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
