The Severe Fluctuation After Bitcoin Breaks the $100,000 Barrier
On December 5, 2024, a historic moment arrived: the price of Bitcoin (BTC) broke the $100,000 barrier for the first time. This iconic breakthrough sent the market into a frenzy and attracted the attention of global media.
1. Bitcoin Breaks $100,000: New Heights and Celebration
For Bitcoin, $100,000 is not just a number; it symbolizes the cryptocurrency market's entry into the mainstream financial system. Over the years, Bitcoin has evolved from a few cents as an 'internet toy' to today's 'digital gold,' with each price milestone carrying new significance.
Reasons for the Breakthrough
Institutional Capital Influx: With numerous large funds and pension funds incorporating Bitcoin into their portfolios, its position has become increasingly solidified.
Inflation Hedge Demand: Under the global central banks' loose monetary policies, investors see Bitcoin as a safe-haven asset against inflation.
Market Reaction
On major social platforms like Twitter and Reddit, the '#Bitcoin100k' hashtag instantly topped trending topics.
Investors rushed in, leading to a surge in trading volume across major exchanges.
2. Rapid Drop to $90,000: Cold Water and Panic
After breaking the $100,000 barrier, the market experienced a brief celebration but soon faced a significant correction. Within less than 48 hours, the price of Bitcoin fell about 10% from its peak, briefly touching $90,000. This correction was mainly caused by the following factors:
Profit-Taking
Long-term holders chose to cash out at historical highs, while short-term speculators followed suit, exacerbating the price decline.
Technical Resistance
Bitcoin faced both psychological and technical resistance at the $100,000 level. Large sell orders triggered a continuous decline.
3. Rebound to $96,000: The Return of Confidence
After hitting a low of $90,000, Bitcoin demonstrated a strong rebound capability, rising back to $96,000 within 24 hours. This rapid recovery once again proved the resilience and attractiveness of the Bitcoin market:
Institutions 'Buy the Dip'
Data shows that large funds quickly entered the market during the price correction, viewing the low price as an investment opportunity.
Strong Technical Support
$90,000 became a key support level, with bullish funds concentrating their efforts at this point to prevent further price declines.
Elon Musk's oldest dog, Marvin, is poised to take off; the highly resilient Marvin will surely fly at some moment.
