Bitcoin retreats near a milestone level on profit-taking
Bitcoin's price has fallen sharply over the past 24 hours, down 3.6% to just above $94,000 (€89,000) at 5.30am CET. The retreat appears to be driven by profit-taking as the post-Trump rally stalled, lacking a fresh catalyst for bitcoin investors to propel the world's largest cryptocurrency past the key physicological barrier of $100,000 (€95,400).
Bitcoin reached a fresh high of above $99,000 (€94,400) last Friday, a 46% rally since 5 November amid Trump's win in the US election. Bitcoin surged before and after the US election, as markets expected that the Trump administration would adopt policies favourable to cryptocurrencies. The president-elect said he would make America a "crypto capital" in his campaign.
Despite the decline, analysts believe that Bitcoin's uptrend is not over.
"There is no doubt that reaching the $100,000 mark will be a significant psychology level for many and we may see some profit taking along the way," Josh Gilbert, a market analyst at eToro Australia, wrote in a note to clients on Friday.
Bitcoin has gained 122% year-to-date, buoyed by the approval of spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) in February and a Bitcoin halving event in April. Meanwhile, central banks' rate cuts and relaxation in liquidities provided a macro tailwind to cryptocurrencies this year.
The cryptocurrency markets often see huge volatility due to a lack of fundamental base for valuations. "The price action in BTC is indicating bubble behaviour - a departure from any known valuation method," said Michael McCarthy, market strategist and CCO at Moomoo Australia.
The digital tokens' price movements purely depend on speculative trades on technical analysis on charts. Meanwhile, increasing
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