The recent price movement in Bitcoin has been significantly impacted by a wave of profit-taking following its surge past the $100,000 mark. After reaching an all-time high, the cryptocurrency has faced selling pressure as investors seek to lock in gains from the rapid ascent. This behavior is typical in the volatile crypto market, where sharp increases often lead to subsequent pullbacks. Additionally, the market is reacting to broader economic factors, such as upcoming U.S. economic data and Federal Reserve decisions. The anticipation of a potential pause in interest rate cuts by the Fed is contributing to a cautious sentiment, as a robust jobs report could lead to a stronger U.S. dollar, applying downward pressure on risk assets like cryptocurrencies.
The 2x Bitcoin Strategy ETF (BITX) experienced a notable decline, dropping 5.19% to $58.96 as of 5:40 PM on Thursday, December 5.