Key Points
- Long-term Bitcoin holders have profited significantly after Bitcoin reached an all-time high of $104,000.
- Upcoming U.S. economic data and potential interest rate cuts could influence Bitcoin’s market performance.
Long-term Bitcoin investors have reaped substantial profits following Bitcoin’s surge to a record-breaking $104,000, according to data from analytics firm CryptoQuant.
The data revealed an increase in the long-term holder spent output profit ratio (LTH-SOPR), a metric tracking the entry price versus the selling price, as Bitcoin surpassed the $100,000 mark.
Bitcoin Profits and Macroeconomics
Following Bitcoin’s unprecedented rise above $100,000, investors are now closely monitoring U.S. economic data that could potentially affect Bitcoin’s bullish momentum. The upcoming jobs report data scheduled for release on December 6 could influence the Federal Reserve’s monetary decisions.
Lower interest rates can lead to more liquid markets, potentially directing capital towards Bitcoin and other digital assets. However, Jag Kooner, the head of derivatives at Bitfinex, has suggested that the opposite could exert “downward pressure” on Bitcoin.
A strong jobs report could prompt the Federal Reserve to slow down the pace of interest rate cuts, potentially strengthening the U.S. dollar and applying downward pressure on risk assets, including cryptocurrencies. On the other hand, a weaker-than-expected report could encourage expectations for more aggressive rate cuts, potentially improving liquidity and positively affecting the crypto market.
Bitcoin Market Correction
In the face of impending economic data, Arthur Azizov, the CEO of B2BINPAY, suggested that Bitcoin might be due for a market correction, especially after crossing the $100,000 psychological threshold. Azizov believes that a retracement below $90,000 would be beneficial for Bitcoin, considering its 54% surge after Donald Trump’s re-election.
Azizov predicts that a pullback is likely imminent and that by the end of the year, Bitcoin’s price will consolidate around $100,000 before retracing to five-digit levels, possibly settling near $85,000 in the subsequent months.