Recent events have only increased anticipation about Bitcoin reaching $100,000, changing from “if” to “when”. Discussions among crypto enthusiasts about this potential milestone, which would represent not only significant achievement for Bitcoin but also for the entire industry as a whole are underway.
Attaining this milestone price point does not come without its share of challenges, particularly for short sellers who run the risk of liquidation. A look into Bitcoin’s on-chain activity offers us an indication of what the future may hold as this cryptocurrency approaches such an unprecedented milestone.
Anticipations Post-$100,000 Milestone
Recent analysis by a blockchain analytics firm highlights Bitcoin’s on-chain performance during its current rally. Reaching $100,000 seems inevitable, yet Bitcoin’s price should slow once it surpasses this threshold.
Analysis indicates the behavior of long-term holders (LTH), who, anticipating profits from selling off their holdings, have begun selling. Evidence of this sell-off pressure includes an increase in asset distribution among these investors indicating a potential shift in market dynamics.
The growing discrepancy between long-term holders’ sell-side pressure and institutional investors’ demand through US spot ETFs could increase price volatility or lead to consolidation, similar to earlier observations when an imbalance between supply and demand caused market fluctuations.
Liquidation Risks Loom for Bitcoin Bears
An esteemed crypto analyst has warned against betting against Bitcoin, with an analysis showing that nearly $1.89 billion worth of positions could be liquidated should its price hit $100,625.
At present, Bitcoin’s value stands at $99,424, showing an impressive 1.4% rise over the last day and nearly 10% climb in one week – this strong momentum speaks to increasing interest and optimism surrounding its future performance as it nears $100K milestones.
