The money is great, but the mission is even greater. #Bitcoinpic.twitter.com/UmWoUgV8fX
— Michael Saylor⚡️ (@saylor) November 25, 2024
Bitcoin faced a sharp price correction on Tuesday, falling over 5.6% in 24 hours to trade at $92,774 as of 8:52 am UTC on Nov. 26. The drop wiped out around $200 billion from the combined $3.2 trillion crypto market capitalization.
Year to date, $MSTR's treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor⚡️ (@saylor) November 25, 2024
Despite initial speculation, on-chain data reveals that the decline was primarily caused by long-term holders, also known as hodlers, rather than institutional investors. Eric Balchunas, a senior financial analyst at Bloomberg, highlighted that notable purchases by prominent figures and companies, including a $5 billion acquisition by Michael Saylor, did not significantly impact the price due to selling by long-term holders. Crypto trader and technical analyst Kyle du Plessis emphasized the influence of long-term holders on the market, noting that “Long-term Bitcoin holders sold 128K BTC, but buying activities absorbed 90% of the selling pressure.
Strong institutional demand is fueling BTC’s rally, bringing it closer to the $100K milestone.”
Press the button and possibly win 1 #Bitcoin.#BitcoinButton is that simple… or is it?
Find out 👉 https://t.co/Co9U8Cpakl pic.twitter.com/45scEX6Rut
— Binance (@binance) November 25, 2024
Traders are nervously eyeing the situation, with concerns about how low the bitcoin price could fall.
Crypto isn’t just a sprint—it’s a marathon. 🏃♂️
Our guide to mastering the long game in crypto will help you navigate the market with patience and strategy.
Read more here ⤵️https://t.co/IGsp84eTEg
— Binance (@binance) November 24, 2024
Bitcoin sell-off driven by hodlers
Crypto billionaire Michael Novogratz cautioned that the price could drop to $80,000 before potentially bouncing back, citing high levels of leverage in the system.
FxPro chief market analyst Alex Kuptsikevich observed that the downturn is due to a geopolitical pullback, which has turned into a broader profit-taking scenario following the rally since November 4. Market experts are closely monitoring bitcoin’s momentum around the $91,800 level, warning that without proper support in this area, the bears’ next target could be the $87,000 area. Despite the fall, Bitcoin remains up more than 30% since the U.S. presidential election on November 5th.
Investors appear to be booking profits from the token’s post-election rally. The general optimism within the crypto markets persists, partly due to the upcoming resignation of U.S. Securities and Exchange Commission Chair Gary Gensler on January 20th, the day of President Donald Trump’s inauguration. The anticipation of Trump’s pro-crypto policies has contributed to the renewed enthusiasm for digital currencies.
