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After reaching the eagerly awaited $100,000 milestone this week, Bitcoin declined due to profit-taking and a risk-averse outlook ahead of today’s anticipated nonfarm payrolls report.
Beyond the technical factors driving the cryptocurrency higher, Trump’s decision to appoint Paul Atkins, a pro-crypto figure, to lead the SEC supports a long-term bullish outlook for Bitcoin.
In contrast, Jerome Powell’s statement that Bitcoin should not compete with the US dollar is expected to have a more limited impact.
Bitcoin’s Rapid Price Movements Raise Concerns
While these developments drove Bitcoin to a new record high yesterday, sellers took control of the market later in the day.
The pullback that began during the US session transitioned into a recovery as Asian trading commenced, reminiscent of earlier days in the cryptocurrency market.
This 10% decline quickly wiped out accumulated long positions, with data showing around $300 million in long positions and $400 million in futures liquidated within minutes.
The latest outlook suggests Bitcoin will face challenges around the $100,000 mark. A significant portion of the sell-off seems driven by accumulation in crypto futures, but market disturbances also contributed during the week.
One such disturbance arose from Mt. Gox resuming BTC transfers, which caused fluctuations during the summer. As Bitcoin reached all-time highs, concerns grew that transfers exceeding $2 billion might lead to sales.
