Bitcoin reached a significant milestone of $100,000 but soon faced a pullback. Experts foresee further price growth before 2024.
Bitcoin's Rise After Trump's Victory
The leading cryptocurrency Bitcoin (BTC) hit the $100,000 mark following Donald Trump's victory. However, it soon faced a pullback to $90,000 levels.
Liquidity Issues and Turning Points
BTC recovered from the decline and rose to $96,000. 10X Research founder Markus Thielen pointed out that Bitcoin exchange balances have reached historic lows, indicating increased upward price pressure. According to him, long-term investors are holding firmly to their BTC positions, limiting the flow of BTC to exchanges and reducing liquidity. Currently, only three major crypto exchanges — Bitfinex, Binance, and Coinbase — have sufficient BTC reserves to meet buyer demand, while smaller exchanges are struggling with liquidity.
Institutional Interest and Growth Forecasts
The decline in BTC exchange balances has coincided with increased institutional interest in Bitcoin-related financial products such as spot Bitcoin ETFs. This growing demand from both retail and institutional investors and the reduction in exchange balances could lead to higher upward price pressure.
Despite current fluctuations, analysts predict Bitcoin will continue its upward trend in 2024, supported by reduced liquidity and institutional interest.
