Following the record price of Bitcoin last week, the cryptocurrency fluctuated around the critical inflection point of $60,000 this week, and traders seem to be curbing excessive speculation.
Some observers believe that the recent decline from an all-time high of $68991 is attributable to the settlement of profits before the end of the year. However, analyst Mike McGlone said that the decline of meme coins such as Dogecoin and Shiba Inu coins also indicates that cryptocurrencies may "eliminate some speculation driven by retail investors."
McGlone said that some cleanup of the meme coin may put pressure on those staunch supporters, because it is a necessary part of an evolving and strengthening ecosystem.
It is reported that the Bloomberg Galaxy Crypto Index, which measures the performance of cryptocurrencies, did not change much on Wednesday, dropping to about 12% from its peak last week. At the same time, data showed that the market value of Dogecoin fell from more than US$80 billion in May to about US$31.5 billion, while the market value of Shiba Inucoin also fell from its peak of US$41 billion at the end of October to US$26.6 billion.
According to Carter Henderson, portfolio manager of Fort Pitt Capital Group, in most cases, as the market enters a period of calm, people start to take profits at the end of the year. They are just locking in gains.
The price of Bitcoin has risen by 108% so far this year, and after reaching key milestones (such as the launch of three Bitcoin futures ETFs in the United States), despite a series of blows, Bitcoin prices have been boosted.
McGlone said that the Bitcoin market price may stabilize at around $60,000, and the Ethereum market may stabilize at around $4,000, adding that the next price platform for Bitcoin will be $100,000.
He stated that “this is a good battle” between longer-term investors and leveraged speculators.
As of press time, the price of Bitcoin is 5,9432.8 US dollars per coin