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Bitcoin (BTC) Price Faces Midterm Correction Below $100K amid High Demand from Institutional Investors
12/18/2024 16:53
BlackRock has continued to accumulate more Bitcoin through its IBIT in the recent past, amid heightened speculation of nation-state adoption.
Key Notes
- Bitcoin price is expected to continue rallying in the remaining few days of 2024 fueled by heightened demand.
- The overall supply of Bitcoin on CEXes has dropped by over 190K in the past two months due to Trump-induced confidence.
After hitting a new all-time high of above $108K earlier in the past 24 hours, Bitcoin BTC $104 106 24h volatility: 2.9% Market cap: $2.06 T Vol. 24h: $99.28 B price has experienced lower bullish momentum. The flagship coin dropped around 3.4 percent in the past 24 hours to trade about $103,741 on Wednesday, December 18, during the mid-London session.
Following the heightened Bitcoin’s volatility, more than $414 million was liquidated from the crypto market, with over $333 million involving long traders. More crypto traders have been taking shelter from the anticipated heightened Bitcoin volatility amid the upcoming monetary policy reviews in the United States later today and in the UK and Japan on Thursday.
Nonetheless, speculation on Bitcoin’s bull run continuing in the remaining two weeks of 2024 is visible in the futures market. According to the latest market data as of this writing, Bitcoin’s open interest (OI) has increased in tandem with underlying value to hover above $68 billion for the first time since the Satoshi era.
BlackRock Leads Whale Investors in Bitcoin Accumulation
The demand for Bitcoin has remained high in the past year but has experienced a sharp uptick since the re-election of pro-crypto President-elect Donald Trump last month. Since November 5, the supply of Bitcoin on centralized exchanges declined by over 190K BTCs, to hover at about 2.24 million at the time of this writing.
The US spot BTC ETFs, led by BlackRock’s IBIT, have been the largest BTC buyers in the past three months. Moreover, MicroStrategy Inc (NASDAQ: MSTR) has been leading an army of public and private companies in adopting Bitcoin on their respective balance sheet.
On Tuesday, December 17, the US spot Bitcoin ETFs registered a daily total net inflow of about $494 million, thus increasing the cumulative total net inflow to nearly $37 billion. BlackRock’s IBIT registered the highest cash inflow on Tuesday of about $741 million, thus currently holding over $58 billion in net assets.
Meanwhile, Fidelity’s FBTC and Grayscale’s GBTC registered the highest cash outflow on Tuesday of about $128 million and $84 million respectively.
Midterm Expectations
Bitcoin price has registered an impressive performance in the past two years, amid the ongoing bull run in major stock indexes and Gold. According to crypto analyst Ali Martinez, Bitcoin price is likely to mirror a similar fractal pattern to the 2017 and 2020/2021 bull market cycles in the coming quarters.
If #Bitcoin $BTC behaves like in 2017 and 2020, then there will be a brief correction after reaching $110,000, a steep correction after hitting $125,000, a big correction at $150,000, and the end of the bull market at $220,000! pic.twitter.com/zcWG75SYvL
— Ali (@ali_charts) December 18, 2024
As a result, the crypto analyst expects Bitcoin price to experience several corrections on its way up towards a cycle top of around $220K in 2025. Furthermore, long-term whales have accelerated profit-taking to distribute their profits to the altcoin industry with higher return profits.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
