Bitcoin Falls to $92,000: Impact of Long-Term Holder Profit-Taking | by Saad Jameel | The Capital | Jan, 2025
The market for cryptocurrencies is clouded with doubt as the last days of 2024 pass. The crown gem of digital assets, Bitcoin, has dropped dramatically; its price as of December 30 is only under $92,000. From its height of $108,000 earlier in the month, a peak that many traders were ecstatic about, this rapid fall indicates a noteworthy 16%. Still, the tides have reversed, and the causes of this change create a convoluted picture of a turbulent market.
The long-term holders, the very people who had supported Bitcoin’s climb, were the first hints of its fall. These seasoned investors started cashing in on their riches following a fantastic year when Bitcoin skyrocketed over 140%. Profit-taking became the buzzword, a natural but powerful action with effects felt throughout the market. This exodus marked a change in attitude and set off a more general correction in the bitcoin market.
Still, the whole scenario cannot be explained by profit-taking by itself. Less tolerant has been the general market climate. A pessimistic trend has developed in the cryptocurrency field, dragging Bitcoin and associates into a general collapse. Analysts characterise this as a market correction — a required stop following the past year’s unrelenting upward momentum.
