Yesterday Bitcoin hit a huge milestone, breaking $100,000 for the first time ever. But just as the crypto space started celebrating, the price took a nosedive and dropped below $93,000.
This was due to massive sell-off in the market. The same day, the crypto market saw nearly $890 million in liquidations, and Bitcoin was responsible for over $489 million of trading volume which was mostly from traders betting that the prices would keep going up.
Today, things started to calm down and Bitcoin slowly climbed back, crossing the $100,000 mark again just after 12:45 PM ET. It peaked at $101,878 before cooling off to around $101,576.
The strong U.S. jobs report released this morning seems to be behind this rebound. The Non-Farm Payroll (NFP) data is often released every first Friday of the month. According to ForexFactory, the NPF release today was “greater than ‘Forecast’ which indicates a good performer for the U.S currency.
Another talking point was Donald Trump announcing venture capitalist David Sacks as the White House’s first-ever AI and Crypto Czar.
Meanwhile, Bitcoin’s popularity with institutional investors keeps growing. Spot Bitcoin ETFs (Exchange Traded Funds) now hold over 1.1 million BTC, worth $110 billion. That’s more than the amount held by Bitcoin’s mysterious creator, Satoshi Nakamoto.
This sudden drop in value was probably unexpected for many traders, especially with those who took out loans to trade. Nevertheless, a rapid return to 100K means that there is still a demand for Bitcoin in the market.
Also Read: Ethereum Crosses $4,000 for Second Time This Year
