Bitcoin Tumbles 7% After $100K Surge — Is the Bull Run Pausing or Just Getting Started?
Just a day after Bitcoin’s historic surge past $100,000, the cryptocurrency dropped nearly 7%, briefly touching $92,144 before rebounding to $97,851 early Friday morning in London. The move comes as traders hedge against further volatility in a market still buzzing over President-elect Donald Trump’s pro-crypto policies.
The $100K Hangover
After the euphoria of breaking six figures, Bitcoin’s pullback isn’t surprising to seasoned traders. Demand for bearish bets, such as put options, has spiked. Notable activity includes puts with strike prices of $95,000 and $70,000, suggesting traders are bracing for possible short-term dips.
“Profit-taking is part of the game,” said Josh Gilbert, market analyst at eToro. “In bull markets, Bitcoin has historically seen drawdowns of 20% to 40%, so this is par for the course.”
Still, optimism remains strong. On the Deribit exchange, calls with strike prices of $110,000 and $120,000 expiring in January 2025 show that long-term traders are betting on more gains.
Trump’s Crypto Boost
Bitcoin’s rally this week was turbocharged by Trump’s announcement that crypto advocate Paul Atkins will head the SEC and that David Sacks will be the White House czar for AI and crypto policy.
Trump has pledged to reverse Biden-era crackdowns on digital assets, promising regulatory clarity and even floating the idea of a national Bitcoin reserve. While critics like former Treasury Secretary Lawrence Summers have dismissed the idea as “crazy,” it has captured the crypto community’s imagination.
Trump’s support has fueled record inflows of $33 billion into Bitcoin ETFs this year, bolstering sentiment that the US could become the global hub for crypto innovation.
What’s Next for Bitcoin?
The dip has sparked talk of a consolidation phase. Tony Sycamore, market analyst at IG Australia, described the recent volatility as a “classic blow-off top,” signaling that Bitcoin might pause before its next move.
However, derivatives markets show optimism extending well into the future. Options trading on BlackRock’s iShares Bitcoin Trust hit a record Thursday, with over 400,000 bullish contracts changing hands.
Why This Matters
Bitcoin’s pullback highlights its notorious volatility but also underscores the growing mainstream acceptance of digital assets. Whether this is a temporary dip or the start of a larger correction, the long-term outlook remains bullish for many investors betting on the next phase of crypto adoption.
Bitcoin Tumbles 7% After $100K Surge — Is the Bull Run Pausing or Just Getting Started? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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