Bitcoin’s Tug‑of‑War With the $96,000 Ceiling
Over the past week, Bitcoin has been wrestling to keep the $97,000 barrier intact. Today, it’s fighting harder to even reclaim the $96,000 mark.
Why the Dip? A Government‑Led Transfer?
Rumors swirl that the U.S. government has moved roughly 19,800 BTC—worth about $2 billion—into Coinbase custody. That transfer could spark a sell‑off, as big batches of coins hit the market in a short span create downward pressure.
It’s not the first time a government sale rattles the market. Earlier this year, the German treasury dumped 50,000 BTC, which sent ripples through the crypto waves. Yet, the current move’s intent remains murky; it might simply be a custodial shift. Crypto enthusiasts frown upon the sale, insisting the Treasury should hold onto its Bitcoins instead of releasing them, a stance that clashes with former President Trump’s pledge to build the world’s biggest crypto reserve if he’s back in the White House next year.
MicroStrategy’s Bullish Play
Meanwhile, MicroStrategy is stacking its pile of Bitcoin. In just a week, the firm bought 15,400 BTC, bumping its total to over 400,000 coins. Bitcoin exchange‑traded funds (ETFs) have also continued to pull in new capital, with $775 million flowing in across the last three sessions.
These inflows suggest that both institutional and retail investors keep their fingers on the pulse of Bitcoin’s future record‑shop potential—even though the current trend feels a bit chilly.
Futures Market: The Slow‑Mo Factor
Bitcoin’s lackluster momentum may also stem from a dip in futures activity. After peaking at more than $64 billion in open interest on November 22, the number has slid to below $58 billion.
Contrast that with XRP, which is enjoying a renaissance. XRP futures have surged from under $700 million in early November to over $4.3 billion today—highlighting a stark performance gap between the two cryptocurrencies.
Stocks, Manufacturing, & Market Sentiment
Elsewhere, the stock market hit record highs yesterday, injecting a healthy dose of risk appetite that Bitcoin could harness. The rally was fueled by stronger-than‑expected manufacturing activity in November, per PMI reports from the Institute for Supply Chain Management and S&P Global. These reports point to rising demand, a sign of a robust U.S. economy that’s quietly driving market gains.
The coming week is a critical juncture. Working‑hour data from today to Friday will unfold, and if it confirms a resilient labor market while rates edge up, risk appetite could surge even further—potentially giving Bitcoin a boost.
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