Bitcoin Struggles Below $100K After Sudden Drop – What’s Next?

Bitcoin briefly surpassed $100,000 but dropped back to $97,969 on December 6, following a 13.53% crash between December 4 and 5, which wiped out over $1.5 billion in positions.

A key factor in this drop could be the news about Meitu, a Chinese selfie app, selling 940 BTC and 31,000 ETH for nearly $80 million, sparking speculation. Despite this, Bitcoin’s year-to-date gain stands at 130%, while Ethereum lags with a 70% increase.

Looking ahead, Bitcoin’s strong performance in the fourth quarter could lead it to hit new all-time highs, potentially pushing its market cap over $2 trillion by the end of 2024. Its dominance is also evident in its $149.9 billion daily trading volume, largely driven by Binance, which contributes 41% through perpetual contracts.

Many analysts are speculating that Bitcoin’s next major move will come after Donald Trump steps in as President of the United States, with a historic bull run expected to continue into 2025.

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To maintain its leadership, Bitcoin undergoes regular upgrades, including Taproot in 2021 to improve smart contracts and SegWit in 2017 to enhance scalability. These updates ensure Bitcoin remains secure and efficient as it continues to expand its role in the cryptocurrency space.

As Bitcoin’s influence grows, further innovations are expected, which could bring new functionalities and bolster its position as a dominant decentralized asset in the global economy.

Experts have high expectations for 2025, with titans like Standard Chartered predicting astronomical surges to $200,000 before the end of next year.

And it is not just expectations of a crypto-friendly policy in the U.S and more rate cuts from the Fed – there are many different factors that can contribuet to a major bullish surge.

Better inflation data in the U.S., calming the geopolitical tension and other economic factors could have a big role in Bitcoin’s development next year.

Alexander Stefanov