After setting up an all-time high (ATH) at $99,690 on November 22, BTC crashed 8.88% in total and created a local bottom at $90,835. Will Bitcoin recover and visit $100,000 or continue its descent to $77,000? Bitcoin (BTC) price today trades at No data found for bitcoin on 30 minutes ago on No data found for bitcoin on 30 minutes ago. BTC price hit a daily high of No data found for bitcoin on 30 minutes ago today after a No data found for bitcoin on 30 minutes ago% move on November 27.
Bitcoin Price Today: 3 Reasons Why BTC Crashed
Bitcoin price dropped 8.88% between the November 22 high of $99,690 and created a local bottom at $90,835. This four-day crash has wiped out more than $1 billion worth of positions. Let’s explore three reasons why Bitcoin crashed.
With Bitcoin breaking its seven-month consolidation range, it likely attracted massive retail investors. As a result of this increased leverage, short-term drops are natural and cull early bulls and impatient investors.
Additionally, $100,000 is a key psychological level, and before Bitcoin price takes out this hurdle, a short-term shakeout is something that veteran traders expect. This allows for a reduction of the total leverage and resets the market dynamics.
One of the key reasons could be profit-taking. Considering that BTC shot up from $17,000 at the start of 2023 and is now hovering just below $100,000, it is likely that these investors will realize profits, adding to the selling pressure.
As mentioned, Bitcoin price today is up No data found for bitcoin on 30 minutes ago% after BTC crashed 8.88% and currently auctions around No data found for bitcoin on 30 minutes ago. Despite the recent drop, BTC shows signs of recovery and trades around No data found for bitcoin on 30 minutes ago. Many were seen preemptively celebrating Bitcoin hitting $100,000 on Friday, but the recent crash has revealed that BTC has other plans. Regardless, one thing is clear – investors are eager to see Bitcoin cross the historic six-digit level. While some altcoins are shooting up, most are waiting for BTC to cool off.
From the looks of it, Bitcoin price looks ready to recover and is showing signs of forming a local bottom.
*bitcoin price updated as of No data found for bitcoin on 30 minutes ago.
Value of BTC trades at No data found for bitcoin on 30 minutes ago, bringing the year-to-date gain from 56% on October 20 to 120% as of November 27. The YTD performance has slumped due to the recent BTC crash. Although many altcoins have shot up over triple digits, Bitcoin is catching up. Ethereum price’s YTD performance is lackluster, stands at 45%, and is well below BTC.
Although Bitcoin is the largest cryptocurrency by market capitalization, Bitcoin’s popularity is due to its first-mover advantage and its being a secure, decentralized network. In addition, many narratives, like digital gold, inflation hedges, and uncorrelated assets, have kept BTC at the forefront of the crypto market since its inception in 2009.
Will BTC Price Finish 2024 on Bullish Note?
Industry veterans’ speculation of a bull run post-US elections was right, and Bitcoin is likely to end November 2024 on a positive note. Many even expect a six-digit target for BTC by the end of November, and this is due to the historical returns. History shows that Bitcoin has always performed massively in the fourth quarter.
Historical Bitcoin Price Performance
With that said, if Bitcoin price hits a new ATH in November or December, Bitcoin’s market capitalization, which stands at No data found for bitcoin on 30 minutes ago, could finally hit the $2 trillion mark.
Bitcoin’s Market Capitalization
While Bitcoin’s market cap hovers around No data found for bitcoin on 30 minutes ago, with Ethereum, the duo controls nearly 65% of the total cryptocurrency market capitalization. Despite the seven-month consolidation, Bitcoin’s $1.93 trillion market cap remains strong, anticipating it reaching $2 trillion before 2025.
BTC: A composition of 24-hour Trading Volume
Being the top crypto has its benefits; more people tend to flock toward the asset. Likewise, BTC’s 24-hour trading volume stands at No data found for bitcoin on 30 minutes ago. Binance, one of the largest cryptocurrency exchanges, contributes a major portion of this volume. Binance’s share of BTC’s 24-hour trading volume comprises spot and perpetuals trading. While spot volume hovers around 11%, perpetual volume is 41%. Exchanges like OKX, Bitget, etc, follow Binance.
Key Bitcoin Blockchain Updates
With a market cap of $1.93 trillion, it is necessary for the network to remain secure, decentralized, and scalable. This is possible by upgrading the Bitcoin network regularly.
Here are some notable upgrades the Bitcoin network has received or planned to receive since its inception in 2009.
Bitcoin Network Upgrades Since 2009
Here are some key milestone upgrades to the Bitcoin network over the past decade.
2020-2024:
Taproot Upgrade (2021): Improved Bitcoin’s smart contract functionality, allowing for more complex transactions and enhanced privacy.Muir Glacier Upgrade (2020): Delayed the “ice age” that would have slowed down the network, ensuring the continued smooth operation of Bitcoin.
2017-2019:
Segregated Witness (SegWit) Upgrade (2017): Increased the block size limit, allowing for more transactions to be processed on the network, and improved the overall scalability of Bitcoin.
Schnorr/Tapscript Upgrade (proposed): Aims to further improve the efficiency and scalability of Bitcoin transactions, but has not yet been activated.
SegWit2x (canceled): A proposed upgrade that aimed to increase the block size limit, but was ultimately canceled due to lack of consensus.
2015-2016:
Bitcoin Core 0.12.0 Upgrade (2016): Introduced several improvements, including better wallet management and enhanced security features.
BIP66 Upgrade (2015): Standardized the way Bitcoin transactions are verified, improving the overall security and reliability of the network.
2013-2014:
Bitcoin Core 0.9.0 Upgrade (2014): Introduced a new wallet format and improved the overall performance of the Bitcoin client.
BIP0016 Upgrade (2013): Enabled the use of payment protocol, allowing for more efficient and secure transactions.
2010-2012:
Pay-to-Script-Hash (P2SH) Upgrade (2012): Introduced a new type of transaction that allows for more complex payment scenarios, improving the overall flexibility of the Bitcoin network.
Bitcoin Core 0.6.0 Upgrade (2011): Introduced several improvements, including better wallet management and enhanced security features.
2009-2010:
Bitcoin Core 0.3.0 Upgrade (2009): One of the earliest upgrades to the Bitcoin network, introducing several key features and improvements.
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