Bitcoin price drops after failing to break $100,000, expert explains normal pullbacks
Bitcoin took a bit of a nosedive this week after flirting with the $100,000 mark on Friday. The price dropped 2% on Tuesday, dipping to around $91,400, and the broader crypto market followed suit with a more than 3% decline in the past 24 hours, as per the CoinDesk 20 Index that tracks the top 20 cryptocurrencies.
This pullback isn’t too surprising, according to Columbia Business School professor Omid Malekan. He explained that given Bitcoin’s rapid growth of about $30,000 in a short period, some profit-taking and volatility are par for the course. Malekan noted that during bull markets like the one we’re in now, Bitcoin tends to have ups and downs, so seeing some fluctuations is pretty normal.
The recent peak of $99,500 for Bitcoin last Friday led to increased liquidity in the market, with companies like MicroStrategy ramping up their Bitcoin purchases. However, on Monday, we saw outflows from spot Bitcoin exchange-traded funds totaling over $438 million for the first time in five days.
Despite this setback, Malekan believes it’s still very possible for Bitcoin to hit the six-figure mark by the end of the year. However, he mentioned that $100,000 is a psychological barrier for the currency and could pose some resistance on the way up.
The market’s recent optimism, in part, stems from expectations of a regulatory shift in favor of crypto following the U.S. election on November 5th. Additionally, Securities and Exchange Commission Chair Gary Gensler announcing his upcoming departure on Inauguration Day added to the positive sentiment, contributing to Bitcoin’s run toward $100,000.
While the road to $100,000 might have hit a bump this week, the crypto market is still buzzing with excitement. And who knows, maybe Bitcoin will reach that six-figure milestone sooner rather than later.
