Bitcoin Investors Take Profits as Price Reaches $104,000 All-Time High

According to CryptoQuant data, long-term Bitcoin holders have started taking profits following the cryptocurrency’s recent rally to a $104,000 all-time high. The long-term holder spent output profit ratio (LTH-SOPR) increased after Bitcoin crossed the $100,000 mark, indicating that sellers made significant profits.

Profit-Taking and Market Analysis

The LTH-SOPR metric hit four on CryptoQuant’s chart, suggesting that sellers made four times the amount spent on initially acquiring their Bitcoin. This implies that recent sellers invested around the $20,000 level, a price point not seen since 2022. The increased profit-taking activity among long-term holders may be a sign of caution in the market.

As Bitcoin breaks the $100,000 barrier, investors are closely watching U.S. economic data that could impact the Federal Reserve’s monetary decisions. The upcoming jobs report on December 6 may influence the Fed’s decision on interest rates, with traders expecting a 25 basis point cut on December 18.

Lower interest rates could lead to more liquid markets, potentially directing capital flows toward Bitcoin and other digital assets. However, a robust jobs report could lead the Federal Reserve to reconsider the pace of interest rate cuts, potentially strengthening the U.S. dollar and applying downward pressure on risk assets, including cryptocurrencies.

A weaker-than-expected jobs report could bolster expectations for more aggressive rate cuts, potentially enhancing liquidity and positively impacting the crypto market.

Expert Insights and Market Outlook

Jag Kooner, Bitfinex’s head of derivatives, warns that the reverse scenario could introduce “downward pressure” on Bitcoin. Meanwhile, B2BINPAY CEO Arthur Azizov argues that BTC is due for a market correction, especially after breaking the $100,000 psychological barrier.

It’s reasonable to conclude that a pullback is likely imminent—it’s just a matter of time. By year-end, I believe Bitcoin’s price will consolidate around $100,000 before retracing to five-digit levels, potentially settling near $85,000 in the following months.

For investors looking to navigate the current market, here are some key takeaways:

  • Keep an eye on U.S. economic data and its potential impact on interest rates and the crypto market.
  • Be cautious of potential market corrections and consider hedging strategies to mitigate risks.
  • Monitor Bitcoin’s price movements and be prepared for potential volatility.

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