Although Bitcoin has broken through $100,000, considering the collapse on December 5, this breakthrough is only temporary. Bitcoin prices hovered around $97,969.0 this morning at 11 am, after falling -4.38% on December 6, reaching a daily high of $103,608.0.
Bitcoin's Price Today: This is Why BTC Fell Below $100,000
From December 4 to 5, the price of Bitcoin plummeted 13.53%, wiping out positions worth over $1.5 billion in just 19 hours. On December 5 alone, the cryptocurrency market wiped out over $1 billion in long and short positions.
BTC Crash, Crypto Liquidation
But why did Bitcoin suddenly fall below the historic $100,000 mark? Can it recover? Let's find out!
Meitu (known as the Chinese MicroStrategy) sold its cryptocurrency assets, causing Bitcoin's price to suddenly drop on December 4. The company's statement on Wednesday indicated that the Chinese selfie app operator sold 940 BTC and 31,000 ETH, earning nearly $80 million.
Bitcoin Crash: Meitu Files Show BTC, ETH Sales
Today, Bitcoin's price rose by -4.38%, trading at $97,969.0.
BTC's trading price is $97,969.0, with a year-to-date gain of around 130% as of December 6, up from 56% on October 20. Due to the recent BTC crash, its year-to-date performance has declined. Although the prices of many Altcoins have soared over triple digits, Bitcoin is catching up. Ethereum's year-to-date performance has been flat, with a gain of 70%, far behind BTC.
Although Bitcoin is the largest cryptocurrency by market cap, Bitcoin's popularity is due to its first-mover advantage and its secure, decentralized network. Furthermore, since its inception in 2009, Bitcoin has been at the forefront of the crypto market, with advantages such as digital gold, inflation hedge, and uncorrelated asset.
Will Bitcoin End 2024 on a Positive Note?
Industry veterans' speculation on the post-US election bull market is correct, and Bitcoin is likely to end 2024 on a positive note in November. Many even expect BTC to reach a six-figure target by the end of November, due to historical returns. History shows that Bitcoin's performance in the fourth quarter is always outstanding.
Bitcoin Historical Price Performance
That said, if Bitcoin prices hit new highs in November or December, Bitcoin's market cap (currently $1.939 trillion) could ultimately reach the $2 trillion mark.
Bitcoin's Market Cap
Bitcoin's market cap hovers around $1.939 trillion, with Ethereum and Bitcoin controlling nearly 65% of the total cryptocurrency market cap. Despite seven months of consolidation, Bitcoin's $1.93 trillion market cap remains strong, and is expected to reach $2 trillion before 2025.
BTC: Composition of 24-Hour Trading Volume
There are benefits to being a top cryptocurrency; more and more people are inclined to flock to this asset. Similarly, BTC's 24-hour trading volume is $149 billion. Binance is one of the largest cryptocurrency exchanges, contributing a large portion of this trading volume. Binance's share in BTC's 24-hour trading volume includes both spot and perpetual contract trading. Spot trading volume hovers around 11%, while perpetual contract trading volume is 41%. Exchanges like OKX and Bitget follow closely behind Binance.
Key Bitcoin Upgrades
With a network market cap of $1.93 trillion, the Bitcoin network must ensure its security, decentralization, and scalability. This can be achieved through regular upgrades to the Bitcoin network.
