Is Bitcoin’s $100,000 Target Still Within Reach?

Bitcoin's pursuit of the $100,000 milestone has faced obstacles recently, despite approaching a historic high.

Analysts attribute the delay to profit-taking from some investors, while institutions continue to bolster their holdings.

Bitcoin’s price hit an all-time high just under $99,500, sparking optimism that it was about to break the $100,000 threshold. However, the momentum slowed, and the price now hovers around $92,000. Experts suggest that the pullback is largely due to profit-taking, particularly from newer investors who bought in during the rally.

Mike Novogratz, CEO of Galaxy Digital, pointed out that the bulk of selling has come from those who purchased Bitcoin above $56,000 earlier in the year, while long-term holders have remained steadfast.

The outflows from Bitcoin exchange-traded funds (ETFs) have also contributed to the dip, with a notable $435.3 million in outflows recorded recently, marking the third-largest daily outflow in the category’s history. Bitcoin ETFs have seen considerable inflows since the U.S. election, which drove the surge in demand for Bitcoin, further fueling its rise earlier this year. However, as some investors now exit, the ETFs are facing significant selling pressure, impacting Bitcoin’s short-term performance.

Despite the setbacks, Bitcoin has still seen a remarkable 120% price increase this year, far outpacing traditional stock indexes like the S&P 500, which has gained just 25%. Some analysts expect the price to break the $100,000 barrier soon, but caution that a correction might follow. Novogratz, for instance, forecasts a minor dip but does not anticipate Bitcoin falling below $80,000.

The fundamental outlook for Bitcoin remains strong, with a growing number of companies buying into the asset. MicroStrategy, Marathon Digital, and others have committed to significant Bitcoin purchases, which could provide a price floor and continue to drive market momentum.

Coinbase Research believes that corporate inflows will play a crucial role in stabilizing Bitcoin’s value, as these institutional purchases tend to be less sensitive to short-term price fluctuations. This trend could further bolster Bitcoin’s position in the market.