Why Was New Bitcoin ATH So Short-Lived?
Quick overview
- Bitcoin reached a new all-time high of $124,457 on Wednesday but quickly fell to $119,080 due to increased selling pressure.
- Short-term investors appear to be cashing out for quick profits, while larger investors, or 'whales', are holding steady.
- Despite recent fluctuations, Bitcoin maintains a strong market cap of $2.37 trillion and continues to attract significant corporate investment.
- Positive regulatory support and stable inflation may contribute to Bitcoin achieving another all-time high in the near future.
Live BTC/USD Chart
On Wednesday, late into the night, Bitcoin (BTC) hit a new all-time high, but it did not last long, and the digital token is now down to $119,080 (BTC/USD).
Over the last day, Bitcoin has fallen 1%, but that does not tell all of the story. The coin actually hit a record high on Wednesday but then dipped downward quickly as selling pressure heightened. What happened to keep Bitcoin from holding onto its gains?
BTC/USD2025 was supposed to be the year that Bitcoin hit $150K or even $170K, but so far, we have not seen it climb anywhere near those projected highs. Instead, Bitcoin has managed a record high of $124,457, and that happened only yesterday. Now the coin is back down from those highs to its holding pattern near $119K. That seems to be the coin’s support level for now, as BTC has stayed very close to that level for most of the last week.
It is possible that many Bitcoin traders are tired of waiting for BTC to reach a higher price point and stay there. So, when the coin passed a new high, they simply sold off their coins in droves to make a quick profit. We have not seen a lot of movement from the whales, however, indicating that it is the short-term investors who have cashed out recently. The whales appear to be content to hold steady and retain their assets for the chance to cash in when Bitcoin is much higher.
The Dominating Macro Asset
Bitcoin continues to break its own record highs this year, though it has had some trouble retaining those gains. Even still, this steady upward movement and market cap of $2.37 trillion makes Bitcoin one of the most valuable assets available.
There are nearly 20 million bitcoins in circulating supply, with more being created all the time. However, the increased difficulty of creating new bitcoins from year to year allows the coin to retain most of its value, and the widespread utility of the coin ensures that it reaches a wider investor base each year.
Bitcoin has government support during the current U.S. presidential administration, and that goes a long way toward easing the fears of investors who are concerned about Bitcoin suddenly bottoming out and losing all of its value overnight. No other crypto token or stablecoin can even come close to matching Bitcoin’s market cap and market domination, so it is no surprise that major corporations are heavily invested in the coin. Strategy (MicroStrategy) posted on social media Wednesday night about BTC’s new high and the fact that the company owns $77.2 billion in BTC assets.
We anticipate that Bitcoin will achieve another all-time high very soon, thanks in part to a positive regulatory stance from the government as well as stable inflation and an elevated support level for BTC’s price.
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