Bitcoin Dances Near $100K: Market Excitement or Solid Momentum?

Bitcoin is currently trading near $96,470, below its all-time high of $99,655, following a volatile week where its price dipped to $90,770 before recovering. As it approaches $100,000, the cryptocurrency market is buzzing with anticipation. But the question remains: is this a sign of solid momentum or temporary market euphoria?

Mudrex CEO and Co-Founder Edul Patel pointed out that the recent Bitcoin rally is driven by strong institutional adoption and growing positive sentiment. He noted that the rally could lead to more global adoption, especially as nations like China and Morocco relax their cryptocurrency regulations. “Bitcoin is becoming more active as a key player in the emerging digital economy,” Patel said, emphasizing the positive momentum despite short-term volatility.

Shivam Thakral, CEO of BuyUcoin, also expressed optimism, noting that Bitcoin’s current phase of consolidation suggests it is on a path to greater profitability. “With positive sentiment and bullish predictions, Bitcoin looks set for an exciting journey ahead,” he added, further fueling expectations that Bitcoin could soon surpass the $100,000 mark.

However, not everyone is convinced that Bitcoin will maintain its upward momentum. Crypto analyst Joe Consorti recently highlighted an important trend. He noted that the price of Bitcoin has historically followed the M2 money supply trend, albeit with a 70-day lag. According to Consorti, the recent decline in M2 suggests that Bitcoin may soon see a price correction, possibly hitting key support levels around $88,000 or even $80,000 if the trend continues.

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Bitcoin has tracked global M2 with a ~70-day gap since September 2023.

I don’t want to alarm anyone, but if it continues, there could be a 20-25% correction in Bitcoin.

Global M2 in ⚪️
Bitcoin in 🟠 pic.twitter.com/PlPoaHUoFR

— Joe Consorti ⚡️ (@JoeConsorti) November 25, 2024

As Patel explained, “During a bull run, profit-taking is common, but these corrections often lead to further upside.” This view is shared by many analysts who believe that short-term declines are common in bull markets. Despite the consortium’s warning, general sentiment remains positive, with many investors confident that Bitcoin will eventually break the $100,000 threshold.

Bitcoin’s recent volatility reflects the challenges it faces in reaching that milestone. But despite these fluctuations, overall market sentiment continues to support bitcoin’s long-term potential. With growing institutional interest, growing global adoption and continued optimism about its future, the $100,000 mark could be just the beginning for Bitcoin.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)