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Highlights:
- Sharp Midweek Volatility: Bitcoin experienced a sharp 6% drop early in the week, followed by a 4.2% rally, before stabilizing near the $96,000 mark.
- Post-Election Bull Run: A pro-crypto platform from President-elect Donald Trump helped push Bitcoin to a fresh all-time high of $96,600 earlier this month.
- ETFs Inflows Slow: After significant inflows last week, Bitcoin exchange-traded funds saw net outflows of less than $20 million over the past two days.
Bitcoin showed signs of stability on Thursday and Friday morning after experiencing a rollercoaster session earlier in the week. The digital currency dropped sharply by 6% between Monday and Tuesday but rebounded midweek with a 4.2% rally, leaving it trading near the $96,000 level. At the time of writing, Bitcoin was valued at $96,140.
A Volatile Week for the Market
The BTC/USD pair displayed classic volatility this week, reflecting ongoing adjustments in the cryptocurrency market. After hitting a fresh all-time high of $96,600 earlier this month, Bitcoin’s momentum was halted as profit-taking ensued. Despite this, the cryptocurrency remains up 127% year to date, showcasing its strong performance throughout 2024.
Impact of Post-Election Sentiment
Bitcoin’s recent performance has been influenced significantly by market reactions to the US elections. President-elect Donald Trump’s pro-crypto policy platform contributed to the digital asset’s meteoric rise following his victory. The market’s euphoria pushed Bitcoin close to the $100,000 milestone, but strong resistance and profit-taking have since tempered those gains.
The cryptocurrency market continues to monitor developments in policy and regulation, with Trump’s administration expected to play a key role in shaping the future of digital assets in the US.
Exchange-Traded Funds and Market Dynamics
The volatility in Bitcoin’s spot price was accompanied by a cooling in exchange-traded fund (ETF) activity. Data from Farside shows net outflows of less than $20 million over the past two days, marking a stark contrast to the multi-billion-dollar inflows observed in the preceding week. This slowdown reflects a broader period of consolidation in the cryptocurrency market as investors assess the next phase of growth.
Looking Ahead
Bitcoin’s stabilization near $96,000 signals a period of calm following its recent fluctuations. While the digital currency remains well-positioned after a strong year, its future trajectory will likely be influenced by global economic factors, regulatory developments, and market sentiment in the wake of the US election.
