Over the past 2 weeks, Bitcoin has set a new record at $104,000 before turning sharply to $92,000. The sudden panic that had taken hold of the markets is now replaced by a new rise.
A few days ago (December 10, 2024), Bitcoin experienced a rapid crash in its price. This phenomenon is mainly explained by the positions taken by some investors. Massive sales accelerated prices down, triggering many Stop-Loss in the Order Book. The combination of these two factors created a sharp price decrease that subsequently created a small panic in some. Prices then went from $100,000 to $92,000 in one hour, a dramatic 8% drop.
Since that event, confidence has returned. Prices quickly stabilized at around $100,000. Prices gradually returning to the levels of December 9, 2024. Bitcoin hit another record price point at $105,000 early on December 16. This new bullish trend is occurring in a context where the number of Bitcoins on exchange platforms is becoming increasingly scarce.
Since February 2024, this represents a decrease of 33% of the Bitcoins present on the CEX (centralized exchange). This is the lowest level since 2018. This factor may suggest a future increase in bitcoin price. Institutional is clearly having more impact this year. The rise at the beginning of the year with the adoption of crypto ETF products already announced the color for this bullrun. Speculation around a possible FED rate cut has put the latter on pause. A correction is always possible because the lack of liquidity in the cryptocurrency market generates strong increases but can also generate a sharp decline.
