Original author: BitpushNews

According to Bitpush data, after hitting a record high of nearly $104,000 yesterday, Bitcoin suddenly fluctuated sharply around 6:30 AM Beijing time on December 6, and quickly plunged to around $91,000 in a few minutes, causing a large-scale market liquidation. Data shows that in the past 24 hours, nearly 210,000 investors have been liquidated, with a total amount of more than $1 billion, mainly long orders. As of press time, the price of BTC has rebounded to more than $97,000. This plunge did not affect other altcoins.

Analyst: LTH profit taking is still far from extreme levels

Data from CryptoQuant shows that long-term Bitcoin holders (LTH) began to take profits after Bitcoin broke through the $100,000 mark. The "Long-term Holder Spend Output Profit" Ratio (LTH-SOPR) indicator shows that the Bitcoin sold by long-term holders has realized a profit of four times its original purchase price. Julio Moreno, head of research at CryptoQuant, pointed out: "After BTC broke through the $100,000 mark, long-term Bitcoin holders (LTH) began to take profits. This is a normal phenomenon during the Bitcoin bull market, and profit-taking is still far from extreme levels."

However, analysts believe that profit-taking is only one factor that led to the decline of Bitcoin. Owen Lau, executive director and senior analyst at Oppenheimer, had earlier reminded investors to be cautious when Bitcoin reaches $100,000 because profit-taking may occur. In addition, market concerns about macroeconomic conditions, regulatory policies and other factors may also increase market volatility.

Focus on non-agricultural data

Investors are currently focusing on the U.S. non-farm payrolls data to be released on December 6, Eastern Time. This data may have a significant impact on the Federal Reserve's monetary policy, and in turn affect the Bitcoin market.

Jag Kooner, head of derivatives at Bitfinex, said that the market generally expects non-farm payrolls data in November to be positive. If the data is strong, the Fed may slow down the pace of interest rate cuts or even postpone them. This will lead to a stronger dollar and have a certain inhibitory effect on risky assets including Bitcoin.

However, the market's expectations for the Fed's December meeting are still biased towards a rate cut. According to data from the Chicago Mercantile Exchange, the market generally believes that the probability that the Fed will cut interest rates by 25 basis points in December is more than 70%. Lower interest rates usually stimulate market liquidity and provide support for risky assets, which has a positive impact on Bitcoin prices.

In addition to monetary policy factors, institutional investor interest and political sentiment continue to support Bitcoin's rise. WeFi co-founder Maksym Sakharov emphasized that institutional investors have been steadily accumulating Bitcoin, and many believe that Bitcoin can serve as a hedge against inflation and economic uncertainty as global trade prepares to deal with the impact of Donald Trump's proposed tariffs.

Sakharov said: "Institutional accumulation remains a key driver of Bitcoin's price momentum. In addition, optimism about the Trump administration's pro-cryptocurrency policies has boosted market confidence. The combination of institutional buying and favorable political sentiment has lifted the price of the currency."

Matt Mena, a cryptocurrency research strategist at 21 Shares, believes that BTC’s next key target is $110,000, and Deribit data shows that most of the trading volume of call option contracts on January 31, 2025 is concentrated at this price level.