Bitcoin, the largest cryptocurrency by market capitalization, saw its price soar to an all-time high of $99,500 last week, edging tantalizingly close to the symbolic $100,000 mark. However, the rally faltered, and bitcoin is now trading closer to $92,000. The anticipated milestone proved elusive, as profit-taking by relatively new investors and significant outflows from bitcoin ETFs cooled the momentum.

Much of the selling pressure came from investors who entered the market above $56,000 earlier this year. Analysts suggest these new entrants seized the opportunity to lock in gains as prices surged, while longer-term holders remained steadfast. According to Galaxy Digital CEO Mike Novogratz, this type of “normal profit-taking” was to be expected after such a rapid rally.

Monday also witnessed the third-largest outflows on record from bitcoin ETFs, totaling $435.3 million. Despite this, some products, like BlackRock’s iShares Bitcoin Trust, continued to attract inflows, underscoring a divide in investor sentiment. ETFs have been a driving force behind bitcoin's 2024 price surge, and their activity remains a key factor in market dynamics.

Corporate interest in bitcoin has not waned. Companies like MicroStrategy announced additional purchases, bolstering their crypto holdings. This trend reflects growing confidence among businesses in bitcoin’s long-term value. Coinbase Research noted that corporate inflows could provide a stable source of capital for the crypto market, potentially sustaining price momentum.

While bitcoin’s price has already doubled this year, outperforming traditional benchmarks like the S&P 500, the road ahead remains uncertain. Some analysts predict further gains, while others caution that corrections could send prices below $80,000. Regardless, corporate adoption and increasing institutional interest may keep bitcoin in the spotlight as the year progresses.