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Bitcoin’s recent surge to a record $104,000 has triggered significant profit-taking among long-term holders, according to CryptoQuant data. The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR), which measures the profitability of coins sold relative to their original purchase price, climbed to a value of four, indicating profits four times the initial investment. CryptoQuant’s Head of Research, Julio Moreno, emphasized that while this activity is typical during bull markets, the current profit-taking remains within normal levels.

Market participants are now turning their focus to key economic developments, including the U.S. November jobs report scheduled for release today. The report is expected to show a rebound of 200,000 jobs following October’s weak numbers caused by hurricanes and labor strikes. Bitfinex Head of Derivatives, Jag Kooner, suggested that strong job growth might lead the Federal Reserve to moderate the pace of interest rate cuts, potentially strengthening the U.S. dollar and pressuring risk assets like Bitcoin.

Traders widely anticipate a 25-basis-point interest rate cut at the Federal Open Market Committee’s Dec. 18 meeting, with the CME FedWatch tool assigning a 72.1% probability. Lower interest rates typically benefit Bitcoin by increasing liquidity and weakening the dollar, which can drive demand for digital assets.

Institutional investors have also played a pivotal role in Bitcoin’s price movements. Maksym Sakharov, co-founder of WeFi, noted that institutional accumulation has been a key rally driver. Many investors view Bitcoin as a hedge against inflation and economic uncertainty, especially amid favorable policies under the current administration. Sakharov suggested that the combination of institutional buying and dovish monetary policies could push Bitcoin to new highs.

The cryptocurrency’s rise follows a 54% gain since Donald Trump’s re-election, underlining its momentum amid growing optimism in the market. However, some analysts warn of a potential pullback. B2BINPAY CEO Arthur Azizov projected a retracement to $85,000 in the coming months, describing such a move as “healthy” after surpassing the psychologically significant $100,000 level.

Despite the recent dip, the market remains optimistic about Bitcoin’s long-term prospects. As traders balance profit-taking with expectations of further growth, Bitcoin’s trajectory will likely hinge on the interplay of economic data, Federal Reserve policy, and continued institutional interest. For now, the cryptocurrency remains a focal point of financial markets, reflecting both the opportunities and volatility inherent in its rapid rise.