Bitcoin reached a peak of $103,647 on Dec. 5, just a day after crossing the $100,000 mark for the first time. By 3:30 p.m. ET, it dipped to a low of $97,917 per unit.

Crypto Frenzy Cools: Bitcoin Nosedives After Historic $103K Peak

Bitcoin’s dramatic climb began on Dec. 4, when it broke past the $100,000 milestone, sparking buzz across markets. However, the celebratory mood was short-lived as selling pressure built shortly after it reached the milestone. By 2:45 p.m. ET on Dec. 5, bitcoin slipped below $100K, landing at $97,917 per coin.

Following the dip, in the past hour close to $40 million in long positions were liquidated on derivatives markets.

Despite this pullback, bitcoin demonstrated resilience, bouncing back slightly to trade at $98,845 by 3:30 p.m. ET the same day. At the moment it is attempting to crack $99,000. Analysts attributed the decline to profit-taking, as traders seized the opportunity to cash in on the psychological $100,000 benchmark. Reaching $100K was a massive achievement, but it’s also a prime point for selling, many people observed.

This significant event comes amidst rising institutional interest and a growing role for bitcoin in mainstream finance. The climb to $103,647 underscores the strong demand, even as traders navigate volatility. While some view the recent drop as a healthy market adjustment, others caution that more declines could occur as additional profit-taking unfolds.

The milestone adds to a series of bullish developments for bitcoin in 2024. Earlier this year, the digital currency gained favor as a hedge against inflation and a store of value, increasing its appeal among retail and institutional investors alike.

As bitcoin lingers below the $100K mark, opinions remain split on its future direction. Some predict a swift rebound driven by steady demand, while others warn that more sell-offs could challenge key support levels in the coming days. By 3:45 p.m. ET, BTC was back above the $99,000 range.