Bitcoin’s $100K breakthrough delayed by profit-taking

• Bitcoin struggles near $100,000, despite a 40% post-election surge after Donald Trump’s re-election.
• Analysts attribute the pause to investor profit-taking and excess leverage in the crypto market.

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What happened

Bitcoin, the world’s largest cryptocurrency, remains stuck below the much-anticipated $100,000 mark, despite significant gains following Donald Trump’s re-election. On Nov. 5, Bitcoin began a rally, climbing over 40% and reaching an all-time high of $99,000 last week. However, as of Monday, it was trading at $98,243, according to CoinGecko.

Experts cite multiple reasons for the hesitation. Profit-taking by long-term investors, who are cashing in on recent gains, is one factor. Additionally, the cryptocurrency market is reportedly heavily leveraged, raising the risk of pullbacks. Analysts like Andre Dragosch of Bitwise suggest this is a short-term correction rather than a fundamental shift in the market trend. Meanwhile, Galaxy Digital CEO Mark Novogratz noted that an unknown large seller has contributed to price pressures, unloading an estimated $14-$15 billion worth of Bitcoin over the past week.

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Why it’s important

Bitcoin’s pause near $100,000 raises questions about the sustainability of its rally and its broader implications for the crypto market. Reaching six figures would symbolize a major psychological and financial milestone, signaling heightened investor confidence in Bitcoin as an asset class. However, challenges like market over-leverage and profit-taking hint at underlying fragility.

Additionally, external factors such as Trump‘s pro-crypto stance, including promises to turn the U.S. into a global crypto hub, have fueled optimism. Still, analysts like Marion Laboure of Deutsche Bank warn that major reforms will require time and congressional approval, meaning their impact on market dynamics may be delayed.

For smaller investors and crypto startups, the current environment poses both risks and opportunities. While regulatory clarity could attract institutional capital, market volatility and potential overvaluation might deter new entrants. Novogratz’s advice to focus on direct Bitcoin investments rather than derivative plays highlights the cautious optimism prevailing in the market.

This moment represents a critical juncture for Bitcoin’s future. If it can break past the $100,000 barrier, it may catalyze a new wave of adoption. Conversely, failure to sustain momentum might reinforce skepticism about cryptocurrencies as a speculative bubble.