Bitcoin Price Today 12/5/2024: What Caused the Sudden Drop and Is the $100,000 Target Still Possible?

Today, Bitcoin fell below the $95,000 target, which could mean a calm before the storm.

Although the decline came out of the blue, it does not appear to be a signal of bearish market sentiment.

After an impressive 37% rise in November – its biggest monthly gain since 2020 – it wouldn’t be shocking if Bitcoin still hits $100,000 later this week.

At the same time, new Layer 2 solutions like PlutoChain ($PLUTO) could attract attention and potentially add new functionality to the BTC network.

Let’s look at what’s happening with Bitcoin today and what we can expect.

Bitcoin Falls Below $95,000 in the Last 24 Hours – What Affects BTC Price Today?

As of December 3, 2024, Bitcoin is trading at around $94,890, slightly below recent highs.

According to recent reports, the US government transferred almost $2 billion worth of Bitcoin to Coinbase, indicating a possible large-scale sale. These types of moves add to the downward pressure on Bitcoin price.

MicroStrategy, a business intelligence firm, continued its significant investment in Bitcoin through December 3rd.

Between November 25 and today, the company purchased an additional 15,400 Bitcoins for $1.5 billion at an average price of $95,976 per coin. This brings MicroStrategy’s total holdings to 402,100 Bitcoins.

Due to regulatory developments, Cboe Global Markets launched cash-settled index options pegged to Bitcoin on December 2nd. These new contracts are based on the Cboe Bitcoin US ETF Index, which tracks the prices of several Bitcoin exchange-traded funds on a market capitalization basis.

This initiative will provide traders with greater flexibility and efficiency in managing their Bitcoin exposure.

Nevertheless, optimism remains high. December has historically been a strong month for Bitcoin, particularly in the post-election years.

Analysts at Spot On Chain note that Bitcoin rose as much as 46% in December in similar scenarios. If this pattern continues, BTC could even rise to a staggering $141,000 before the end of the month.

PlutoChain ($PLUTO) is a hybrid Layer 2 project that could redefine Bitcoin’s role in DeFi

Even though Bitcoin is emerging and dominating the crypto market, it has missed out on the DeFi revolution – an area we can no longer overlook as decentralized finance continues to reshape the industry.

This is where PlutoChain ($PLUTO) could come into play. This new Layer 2 solution could change Bitcoin’s position and potentially redefine its role in the DeFi ecosystem.

At its core, PlutoChain plans to build on Bitcoin’s unmatched security and reliability, while potentially adding the functionality needed to support smart contracts and decentralized applications (dApps).

This improvement could elevate Bitcoin beyond its current role as a digital asset and potentially make it a major player in DeFi.

One of Bitcoin’s biggest hurdles has been its high transaction fees and limited scalability, especially during times of high demand.

PlutoChain could address these issues with an optimized transaction system designed to potentially reduce costs and improve scalability. If successful, this could make Bitcoin far more practical for everyday transactions and encourage wider adoption across industries.

Another advantage of PlutoChain is its compatibility with the Ethereum Virtual Machine (EVM). This interoperability could allow Ethereum-based DeFi projects to seamlessly integrate with the Bitcoin network.

By combining Bitcoin’s robust security with Ethereum’s flexible DeFi tools, PlutoChain could enable innovative cross-chain applications and partnerships.

Developers could leverage the strengths of both platforms and create decentralized, secure, scalable and decentralized solutions.

To ensure security and reliability, PlutoChain has undergone a thorough audit by SolidProof, a reputable security company.

This rigorous verification gives developers confidence in the platform’s ability to deliver on its promises.

Last words

Bitcoin has fallen below the $95,000 resistance point – but this could be just a brief moment of stabilization for the world’s leading cryptocurrency.

In this dynamic, there are also new projects like PlutoChain ($PLUTO) that could make a big splash when the mainnet launches.

If PlutoChain makes its vision come true, it could open new doors for Bitcoin in the DeFi space. Bitcoin could emerge as a versatile decentralized finance tool that could create opportunities for developers and everyday users.

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Visit the following links to learn more about PlutoChain and its unique features:

Official website: https://plutochain.io

X/Twitter page: https://x.com/plutochain/

Telegram channel: https://t.me/PlutoChainAnnouncements/

This article is for informational purposes only and should not be interpreted as financial advice. Readers are encouraged to conduct their own due diligence. Predictions involve risk and may not be updated.