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.
Cryptocurrency expert Benjamin Cowen has shared his thoughts on the potential end of Bitcoin’s (BTC) bull run, cautioning that a key price level could signal the shift.
Recent reports suggest that El Salvador’s 6,114 BTC, claimed by the government, may actually be controlled by the crypto exchange Bitfinex.
Under the guidance of Cathie Wood, ARK Invest has significantly bolstered its Bitcoin holdings, purchasing 997 BTC, valued at approximately $80 million, on March 13, 2025.
Bitcoin ETFs saw significant outflows on Thursday, totaling $143.3 million, based on data from Farside Investors.