Following recent developments, it seems only a matter of time before Bitcoin achieves its long-awaited six-figure valuation. In recent weeks, discussions surrounding the leading cryptocurrency have been dominated by the possibility of it reaching $100,000.
A six-digit Bitcoin price would not only mark a significant achievement for the crypto market, but it would also trigger “negative” outcomes, especially for short sellers. Below, we explore potential scenarios that could unfold when Bitcoin’s price surpasses the $100,000 threshold.
What can we expect once Bitcoin hits $100,000?
According to a recent analysis from blockchain intelligence firm Glassnode, the surge towards the $100,000 mark is becoming increasingly likely, but the firm anticipates that Bitcoin may lose some traction after achieving this target.
A key factor in this outlook involves the actions of long-term holders (LTH). Glassnode indicates that these investors are beginning to liquidate some of their holdings for profit and are likely considering further sales as the upward trend continues.
These significant players are adjusting their portfolios based on the LTH Spending Binary Indicator, which monitors sell-side activity among long-term holders. This indicator reveals that LTH balances have declined on 11 of the past 15 days.
Strong demand from institutional investors, particularly through U.S. spot exchange-traded funds (ETFs), is absorbing 90% of the sell-off pressure from long-term holders. However, Glassnode warns that the momentum of sales from this investor group may soon overshadow ETF inflows, a trend also noted back in early February 2024.
Should the selling pressure continue to exceed the demand from ETFs, it might result in short-term price fluctuations or even price stabilization, according to Glassnode. The report states:
“Starting from November 13th, long-term holders’ selling pressure began to surpass ETF net inflows, echoing the pattern observed in late February 2024, where mismatches in supply and demand heightened market volatility and led to stabilization.”
A $1.89 billion liquidation looms if Bitcoin exceeds this price
On November 22nd, noted cryptocurrency analyst Ali Martinez alerted Bitcoin bears to an impending risk. Data from CoinGlass suggests that an astonishing $1.89 billion in positions could be liquidated if Bitcoin reaches $100,625.
As of now, Bitcoin is trading at $99,424, marking a 1.4% rise in the last 24 hours. In terms of weekly performance, Bitcoin has shown an impressive increase of nearly 10% over the past week, according to CoinGecko.
Featured image by iStock, chart data from TradingView
