Bitcoin fluctuations are influenced by a variety of factors, and while the specific reasons for a price drop from above $100,000 to $98,000 would need to be assessed in real-time, here are some common factors that could contribute to such a decline:
1. Market Sentiment: Changes in investor sentiment due to news events, regulatory developments, or market analysis can lead to fluctuations in price.
2. Profit-Taking: After a significant price increase, some investors may choose to lock in profits, leading to selling pressure that can result in a price drop.
3. Market Corrections: The cryptocurrency market is known for its volatility. A drop can be a natural correction following rapid price increases.
4. Regulatory News: Any negative news regarding regulations or potential crackdowns in key markets can cause fear among investors and lead to a price decline.
5. Technical Factors: Traders often follow technical indicators, and if certain resistance levels are hit, it can trigger sell-offs.
6. Global Economic Factors: Broader economic changes, including interest rates, inflation, and investor outlook towards risk assets, can impact Bitcoin prices.
For a precise analysis, one would need to look at recent news, trading volumes, and market behavior leading up to the observed price change.