Bitcoin rebounded strongly after the US election, with the market anticipating that Trump would implement policies that would benefit the development of cryptocurrencies. However, after approaching a record high of $100,000 on November 22, it failed to sustain its gains. Technically and psychologically, $100,000 is a difficult threshold to overcome.
The incoming cabinet supports cryptocurrency.
Besides Trump’s campaign declaration that he held Ethereum, the world’s second-largest cryptocurrency, worth between $1 million and $5 million, Vice President-elect Vance also revealed in August that he held Bitcoin worth between $250,000 and $500,000. Furthermore, several future cabinet members have publicly expressed interest in cryptocurrencies, including Robert Kennedy Jr., nominated for Secretary of Health and Human Services; Howard Lutnick, Secretary of Commerce; Pete Hegseth, Secretary of Defense; and Tulsi Gabbard, Director of National Intelligence.
The $100,000 “emotional symbol”
The market is full of expectations for cryptocurrency policy, but Bitcoin has consistently failed to break the $100,000 mark. The investment community describes $100,000 not only as the most important psychological price level in Bitcoin’s history, but also as an “emotional symbol” for the cryptocurrency market over the years. In an interview with Axios, Ravi Doshi, Head of Marketing at cryptocurrency brokerage FalconX, stated, “Breaking through psychological price levels is usually accompanied by intense market competition. While we anticipate challenges for Bitcoin, the medium-term momentum remains encouraging.”
High-level selling to lock in profits
In short, Doshi’s strategy is for all investors to take profits and exit at the peak. FalconX’s over-the-counter (OTC) platform showed a large number of investors selling to lock in profits when Bitcoin’s price approached $100,000. The current historical high price means everyone is in a profitable position, thus strengthening the incentive to sell.
Regarding psychological factors, even without immediate selling, many people consider the round number “$100,000” an important indicator. According to the OKX exchange, there is already a sell order on its platform worth approximately $1 billion, totaling 1,000 Bitcoins, with the price set exactly at $100,000.
Awakening “Sleeping” Bitcoins
However, some Bitcoin holders, anticipating a potential sell-off after the price drops, tend to sell before reaching their target price to avoid a “stampede” situation and reduce risk. A report from data analytics firm Glassnode shows that as Bitcoin approached the $100,000 mark, a large number of previously dormant Bitcoins became active again, including 507,000 Bitcoins that hadn’t been traded for several months, whose holders set new selling targets. A similar phenomenon occurred in March of this year. When Bitcoin ended its 16-month slump and broke its all-time high, 934,000 Bitcoins “awakened” from their slumber and participated in market activity.
This isn’t the first time the market has hyped up Bitcoin’s potential to reach $100,000. During the 2021 bull market, investors on Twitter (the predecessor to X) changed their profile pictures to “laser eyes” and added the hashtag “#LaserRayUntil100K” to express their desire for Bitcoin to hit $100,000. However, the rally ultimately stalled at $70,000, falling short of the target. Now, Bitcoin is approaching that price level again, exciting its supporters. Whether it ultimately breaks through or not, it will be another milestone for the cryptocurrency market.
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