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Following a failed attempt at $100,000 and amid waning enthusiasm over the so-called Trump trade, Bitcoin saw its longest losing streak for the period since Donald Trump's US election victory.
The OG token slid to $93,000 on Tuesday after a three-day drop as the gains on Trump's crypto embrace were due for a pause.
The rally in the largest token by value took it to about $300 shy of the historic $100,000 mark before the gains in Bitcoin started to unravel.
On Monday, the token fell by almost 5% to $93,000, giving giving up more than half of the gains made last week in just a single day.
The token's difficulty breaching the six-figure mark has many betting that this is the latest peak in the current rally, with profit taking kicking in on the relentless rally.
However, Bitcoin is trading close to that mark, up over 40% since Trump's victory and more than 150% over the past year.
In the latest run-up, the cryptocurrency hit multiple all-time highs after breaching two important records set before this year's US election results.
The rally in the broader digital asset market has also stalled after the industry's valuations increased by over $1 trillion.
With a national Bitcoin reserve and crypto-friendly legislation, Trump has vowed to make the United States the crypto world's headquarters.
The sentiment rally is based on the pledges, but how soon and if they are even doable are still open questions.
After crypto-asset corporations invested extensively in Trump's election campaign ads, the once-sceptic president changed his mind and became a fan.
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Recently, indications of a more stringent US acceptance of cryptocurrency have been increasing.
Following the election, almost $7 billion flooded US spot Bitcoin exchange-traded funds. The ETFs presently hold a total of $105 billion.
Rather than a reversal downward or anything ominous, the latest Bitcoin decline is a necessary pullback to work off overbought readings.
It's also a good reminder that no market—including crypto—ever moves in a straight line.
Meanwhile, MicroStrategy, which has been a key player in Bitcoin's recent rally toward the $100,000 milestone, purchased another 55,500 BTC at a value of $5.4 billion with an average price of $97,862.
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
However, BRN analyst Valentin Fournier believes that MicroStrategy's Bitcoin strategy won't last forever.
"MicroStrategy played a pivotal role in Bitcoin's push toward $100K last week, but this aggressive buying pace is unlikely to be sustainable over the long term," he said.
Fournier highlights how Bitcoin ETFs faced strong outflows yesterday, with $435 million leaving the market in a single day. Meanwhile, Ethereum experienced modest inflows of $3 million.
"These Bitcoin outflows follow a weekend where the price failed to break above $100K despite MicroStrategy’s significant buying pressure," Fournier explained.
.@MicroStrategy played a pivotal role in #Bitcoin's push toward $100K last week. It's most recent purchase was 55,500 BTC worth $5.4 billion at an average price of $97,862, making the firm the primary driver of the rally, surpassing the combined demand from #ETFs ($3.3 billion)
— BRN (@thebrn_co) November 26, 2024
"While Bitcoin recently dipped, its fundamentals remain solid, and major catalysts suggest higher prices in the weeks and months ahead. We continue to recommend staying heavily invested and taking advantage of dips to accumulate further," he concluded.
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