Experts interviewed by RB.RU explained the sharp rise in the Bitcoin exchange rate against the dollar and its equally sharp fall in November. According to analysts, those who bought cryptocurrencies in 2013 began selling them now and “raised capital.”
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How Bitcoin rose and fell in the fourth quarter
Co-founder and CEO of Midex Capital financial group Kirill Medvedev explained to RB.RU that the initial growth of Bitcoin in the fourth quarter of 2024 from 62 thousand dollars to 73 thousand dollars is associated with the escalation of the conflict in the Middle East along the Lebanon-Israel line. In this context, Bitcoin acted as a protective asset and showed growth alongside gold.
The next round of $99,000 was related to the proposal by Donald Trump, winner of the United States presidential election, to create a strategic reserve of bitcoins for the United States government.
“Most of the funds after the elections came from Bitcoin exchange-traded ETFs, and weekly inflows to these funds ranged from $1 billion to $4 billion. Against this backdrop, Bitcoin reached $99.7 thousand,” Medvedev explained.
On November 25, Bitcoin began to fall rapidly and immediately fell below $91 thousand, followed by the entire cryptocurrency market, he said. Rail Khakimov, independent financial consultant.
“At the strong psychological level of $100k, many players started making profits from their Bitcoin positions, thus putting pressure on the price. “This correction is absolutely normal after such strong growth,” added the expert.
Medvedev suggested that the current Bitcoin price drop from $99,000 to $91,000 began in the context of the news that Israel would sign a ceasefire agreement in Lebanon.
“In reality, it was precisely from this aggravation that the growth of Bitcoin began, so investors began to close their positions and make profits in the context of the cessation of the conflict. This caused the drop that we are seeing now in the entire cryptocurrency market,” Medvedev explained.
What does a change in Bitcoin price mean?
According economist, former vice president of Otkritie Bank Konstantin TserazovBitcoin’s current volatility and sharp drop in price are not surprising.
“The market for the oldest cryptocurrency, on the one hand, functions in the absence of large market makers who can work to reduce Bitcoin’s volatility. On the other hand, there are important players in the Bitcoin market. The concentration of bitcoins in their hands is so great that in the future such distribution of ownership of the asset will greatly oppose them, as well as other cryptocurrencies belonging to the conditional generation of bitcoins,” the expert explained.
According to Tserazov, the Bitcoin blockchain itself is decentralized, but the ownership structure of this asset has exactly the opposite property. Its correlation with the S&P 500, the Nasdaq Composite or the price of gold is temporary and does not reflect the true long-term situation.
Bitcoin itself remains a high-risk asset as its intrinsic value remains unstable, the economist notes.
“The digital gold thesis collides with the high volatility of the asset. Bitcoin had great potential, but for various reasons it has not been realized and is unlikely to be realized in the foreseeable future. Of course, this asset will be present in the portfolios of global investors, but its place is among high-risk investments with very high volatility, with poorly defined internal value and regulatory risks,” says Tserazov.
The expert added that Bitcoin’s own history has enriched the blockchain field with experience, which is already leading to the development of other innovations based on distributed ledger technology, in particular artificial intelligence, and the deployment of the corresponding technological infrastructure. This infrastructure can provide countries moving in this direction with a sustainable boost to economic development and a reduction in price increases.
Who made money with Bitcoin?
Founder of the international consulting boutique Bespalov Finance Alexander Bespalov told RB.RU how Bitcoin’s growth allowed some investors to “make capital in cryptocurrencies.”
Bespalov explained that in two weeks the price of Bitcoin increased by 40% and when the currency cost between $95,000 and $98,000, investors considered that the growth was sufficient and began to close positions and make profits. Among these investors there were many who bought bitcoins at the lowest price.
Bespalov managed to communicate with an investor who bought bitcoins for 1 million rubles in 2013 (then the exchange rate for this currency was one thousand dollars).
“You can calculate how many times your capital has increased; It is now estimated in millions of dollars. Even those who bought Bitcoin two years ago could turn a million into ten. I mean, they are fantastic figures and it is quite logical to want to keep part of the profits. We will see the rise of new crypto millionaires who made their capital not in factories, ships or trading, but in cryptocurrencies. Those who simply believed in Bitcoin held it for several years and increased their capital not even tens, but hundreds of times,” the expert clarified.
Currently, Bespalov added, serious investors have begun to appear among cryptocurrency buyers, including Microstrategy and the Blackrock fund, who are increasing their positions.
Bespalov admitted that Bitcoin will continue to grow in 2025 with volatility, but will not fall below $50,000-60,000.
“Many experts agree that the cryptocurrency market will continue to grow in the context of events taking place mainly in the United States. “We are talking about the electoral victory of Donald Trump, who talks about liberalizing the regulation of cryptocurrencies and even that the United States will buy bitcoins and in fact turn them into another reserve asset,” explained the specialist.
Author:
Ekaterina Strukova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
