Bitcoin 
$93,313 price surged to $104,088 over the past 24 hours before beginning to drop again. As this article was being prepared, the price fell below $98,500, nearly erasing its gains within the last day. What is causing this decline? Why are cryptocurrencies falling, and how long might this last?
Market Reactions to Bitcoin and Cryptocurrency Volatility
Initially, there was an anticipated wave of profit-taking following BTC’s rise above six-digit levels. It is normal for a rapid and steady increase to pause at some point, even in bull markets. Such pauses can lead to losses of up to 20%. The profit-taking triggered by reaching six-digit prices in December after November’s surge is quite standard.
Impact of Market News on Bitcoin’s Price Trend
Moreover, the recent rise was a response to a struggle against liquidated short positions at $98,000 and above. After liquidations, a price pullback is typical. The crucial point is that there is a short time before the Federal Reserve meeting on December 18 and more than a month until Trump takes office on January 20.
With the confirmation of the SEC Chair, many of the priced-in expectations have materialized. Since we are witnessing the effects of anticipated events on the charts in the short and medium term, a pause in rate cuts at the Fed meeting would not be surprising.
However, as we approach the first quarter of next year, with the U.S. stance on cryptocurrency having changed significantly, the market is expected to maintain its upward trajectory. In summary, this decline is likely to be shallow and short-lived, with potential support levels around $94,000 and $91,300.
