Bitcoin Approaches $100,000 with Market Volatility Expected by Thanksgiving
Bitcoin reached approximately $99,500 before falling below $97,300, with the price at around $99,350 at 2 pm ET. The asset approaches the $100,000 mark, prompting speculation about potential outcomes if it surpasses or fails to break this threshold.
Federico Brokate, head of 21Shares’ US business and a key figure in launching BlackRock's iShares Bitcoin Trust (IBIT), highlighted that the six-figure mark serves as a psychological barrier for investors. He noted that BTC's price increased by 3-5% after hitting $90,000, suggesting a similar pattern could occur at $100,000.
Brokate warned that if Bitcoin does not decisively break this barrier by Thanksgiving, a potential 15-20% correction could occur, testing the $80,000 support level and affecting leveraged investors. He also indicated that reaching the six-figure level could lead to increased short-term volatility due to market dynamics involving orders and liquidity providers.
In terms of altcoins, Brokate observed that these markets often rally after Bitcoin stabilizes, with investors seeking higher-risk opportunities. This shift may happen in late Q1 or Q2. Notably, solana (SOL) recently hit a new peak at around $263, while ether (ETH) remains about 32% below its November 2021 high, and XRP saw a 65% increase over the past week.
Brokate recalled that during Thanksgiving 2017, Bitcoin was priced between $6,000 and $9,000 before climbing to approximately $16,000, suggesting a possible repeat of such movement this year.