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Bitcoin (BTC) broke through the $100,000 mark on December 11th, rising nearly 4%. Market experts attribute the rebound to positive macroeconomic data from the U.S. and bullish sentiment in the crypto market. Adding to this momentum is the growth of stablecoins, that have now surpassed the $200 billion market cap, fueling the rally.
The surge followed November’s U.S. inflation data, which aligned with expectations and sparked optimism about the Federal Reserve’s policy shift. Market analysts believe this strengthened institutional interest in Bitcoin, pushing its price beyond the psychological $100K barrier.
As trading volumes soared, BTC’s market dominance climbed to 54%, its highest since early 2021. The $200 billion stablecoin market capitalization shows the crypto ecosystem’s maturity and resilience.
This rally has reignited discussions about Bitcoin’s future potential, with predictions of further upward momentum if economic conditions remain favorable. However, market observers advise caution, highlighting the volatile nature of crypto markets.
Read also: Bitcoin’s Surge Ignites Altcoin Rally: Is This 2017 All Over Again?
Bitcoin Liquidations Ahead?
Analysts predict a significant move as Bitcoin approaches $105,000. According to Crypto Rover, over $2 billion worth of Bitcoin shorts could be liquidated once this level is breached, potentially fueling more upside momentum.
Market data from CoinGlass shows a massive accumulation of leveraged positions, with long liquidations decreasing and short liquidations rising steadily. This highlights the growing volatility in the market. Bitcoin’s trajectory remains pivotal as traders anticipate heightened activity near the critical $105,000 threshold.
Further price corrections are possible if retail investors lock in profits. But with strong market sentiment and institutional backing, Bitcoin’s trajectory toward wider adoption appears stronger than ever.
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