Bitcoin (BTC) has fallen from $126,000 to $100,000 after reaching $75,000 earlier this year. 55% of traditional hedge funds now hold digital assets, up from 47% in 2024. Tightening liquidity from the U.S. Treasury’s cash buildup and the government shutdown contributed to Bitcoin’s recent decline.

BTC is back in the headlines, with the price moving rapidly between $75,000 and $125,000. The $100,000 price level is a key battleground for Bitcoin buyers and sellers, influencing market sentiment. Future price predictions vary widely, with analysts divided on whether Bitcoin will reach higher or lower prices.

Factors such as the U.S. government shutdown, dollar strength, and concerns about overvalued tech stocks have all impacted Bitcoin’s recent price pullback. Citigroup analysts highlight tightening liquidity conditions as a challenge for Bitcoin holders, with potential improvements in liquidity expected to support the BTC price.

Institutional interest in digital assets is on the rise, with 55% of traditional hedge funds holding exposure to digital assets in 2025. The evolving U.S. regulatory environment is encouraging institutional investors to increase their digital asset allocations. The sentiment and money flow of hedge funds could influence Bitcoin’s price trajectory, potentially leading to a move towards $125,000.

Overall, the path for Bitcoin’s price remains uncertain, with various factors influencing its trajectory between $75,000 and $125,000. Institutional interest and regulatory developments are key factors to watch, as they could play a significant role in shaping Bitcoin’s future price movements.

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