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Bitcoin’s drop below $91,000 yesterday (those words would have spurred a double-take a month ago) felt rather substantial.
Perhaps because of the anticipation of BTC hitting the six-figure mark for the first time — followed by a dip after falling just short (around $99,800).
“However, bitcoin’s -8% dip over the last week barely rates when compared to the volatility during the 237 days of downward channel chop between Mar. 14, 2024 and Nov. 6, 2024,” Galaxy Digital research head Alex Thorn pointed out in a Tuesday note.
Over that span, there were at least seven drawdowns larger than that, and five of 15% or more, Thorn found.
Most recent BTC movements have involved coins created (via the so-called unspent transaction output metric) between $56,000 and $72,000, Galaxy data indicates.
“Rather than whales from eons ago dumping coins, the sell pressure appears to be coming primarily from 2024 buyers taking profits off the back of this move towards $100k,” Thorn wrote.
The Galaxy research head went as far as to say corrections are “healthy.” While the global rates environment and money supply could present headwinds for risk assets, Thorn added, there are also plenty of catalysts.
In fact, there were reports yesterday that the Trump Administration could look to give more crypto regulatory power to the CFTC, potentially reducing the SEC’s influence in the segment. An SEC spokesperson declined to comment.
“This move…involves expanding the CFTC’s role to include oversight of digital assets, regulating crypto exchanges and spot markets as commodities — potentially creating a supportive framework for the industry’s growth in the US,” Wintermute OTC Trader Jake O. said in an email. “Sea change.”
BTC’s price was roughly $96,270 at 2 pm ET Wednesday — up 4.7% from 24 hours prior. We’ve talked here about the other apparent tailwinds for BTC heading into 2025, whether it be greater regulatory clarity, institutional adoption or a possible US strategic bitcoin reserve.
All is to say, buckle up.
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