Amid Bitcoin Decline, Experts Wonder Why It Has Not Hit $100K Yet
Bitcoin (BTC) has dropped by nearly 7% over the last week, now at $91,810 (BTC/USD), and there is concern over why it has not been able to pass $100K so far.
On Monday, the price of the leading token dropped 1.5%, causing investors to wonder if the bull run is coming to an end. This crypto coin has rushed past its previous milestones and exceeded market expectations over the past few weeks, fueled partly by speculation over Donald Trump’s upcoming policies and partly by new Federal Reserve interest rate cuts.
Bitcoin has benefitted from massive investments from all corners, particularly from Bitcoin whales like the commercial investor MicroStrategy. These investments have pushed Bitcoin to a high of $99,655, but the coin has since fallen from that high point. What caused the decline, and why is Bitcoin not above $100,000 at this point?
No $100K for Bitcoin?
The token should have been able to hit six figures by now, according to market estimates. Having hovered so close to that mark recently made it a tantalizing prospect for investors. A significant milestone like that would have raised Bitcoin’s prestige outside the crypto market. However, the failure to hit that mark has caused the coin to become the target of rampant speculation that it cannot pass $100K for now.
Now that Bitcoin has fallen from the high mark, many investors will likely have put in place the option to sell once the coin hits $98K or $99K. XTB research director Kathleen Brooks says that could be the case for many major investors right now. That could be troublesome for investors who are holding out for $100K. There is now a stigma attached to Bitcoin that it has trouble passing $100K. That stigma may be unearned or superstitious, but investors need to be aware of it.
The longer Bitcoin spends below the $10kk level, the larger that stigma will grow, and it will become harder for the coin to pass the mark. Thus, the market superstition becomes self-fulfilling.
What should push the can past that level, though, is Trump being sworn into office in January. We could also see Bitcoin move past the mark when the next Fed interest cut comes along. These major market-moving events could be enough to overpower the stigma and help Bitcoin achieve what it has not managed so far.
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