Bitcoin Price Drops to $103,741 Amid $414 Million Market Liquidation

Bitcoin (#BTC) reached a new all-time high above $108K but has since experienced a decline of approximately 3.4%, trading around $103,741 during the mid-London session on December 18. The volatility resulted in over $414 million liquidated from the crypto market, with long traders accounting for over $333 million. Traders are reducing exposure due to anticipated volatility linked to upcoming monetary policy reviews in the US, UK, and Japan.

Despite recent fluctuations, speculation persists regarding Bitcoin's potential bull run in the remaining weeks of 2024. Current market data indicates Bitcoin's open interest (OI) has increased, surpassing $68 billion for the first time since the Satoshi era.

BlackRock Leads Whale Investors in Bitcoin Accumulation

The demand for Bitcoin has surged, particularly following the re-election of pro-crypto President-elect Donald Trump on November 5. Centralized exchanges have seen Bitcoin supply drop by over 190K BTC, now at approximately 2.24 million.

US spot Bitcoin ETFs, led by BlackRock’s IBIT, have been significant buyers in the past three months. Additionally, MicroStrategy Inc has been at the forefront of public and private companies adopting Bitcoin on their balance sheets.

On December 17, US spot Bitcoin ETFs reported a net inflow of about $494 million, bringing the total cumulative inflow to nearly $37 billion. BlackRock’s IBIT recorded the highest cash inflow of about $741 million, holding over $58 billion in net assets. Conversely, Fidelity’s FBTC and Grayscale’s GBTC saw outflows of approximately $128 million and $84 million, respectively.

Midterm Expectations

Bitcoin has shown impressive performance over the past two years alongside major stock indexes and Gold. Analyst Ali Martinez suggests that Bitcoin may follow a similar pattern to the 2017 and 2020/2021 bull markets in upcoming quarters.

Martinez expects Bitcoin to undergo several corrections before potentially reaching a cycle peak around $220K in 2025. Additionally, long-term investors have begun profit-taking, reallocating funds into altcoins for higher returns.