Bitcoin Price Analysis: BTC Rises To Reclaim $116,000, Can It Push Higher?
Bitcoin (BTC) is consolidating above the $116,000 level as treasury firms turn their attention towards altcoins. Bitcoin treasury companies have seen a sharp decline in share prices as the initial euphoria subsides.
The flagship cryptocurrency is marginally down during the ongoing session, trading around $116.200.
Bitcoin Treasury Companies In The Doldrums
Bitcoin treasury companies have registered a sharp decline in their share prices as investor euphoria wanes. Treasury companies have been buying Bitcoin by selling shares or issuing debt. Investors have snapped up shares in these companies, encouraged by record price levels in the cryptocurrency market and a crypto-friendly approach by President Trump’s administration. The decline can be gauged by looking at the share prices of some of the most prominent Bitcoin treasury companies.
Michael Saylor’s Strategy, the largest corporate Bitcoin holder, has seen its shares tumble from $457 in July to $328 this week, the lowest level since April. Meanwhile, Japan’s Metaplanet is also struggling, with its share price down 60% from its June peak. Despite the decline, they remain up 105% for the year. Several small companies that announced their own Bitcoin strategy are also struggling. Kaiko analyst Adam McCarthy stated,
“The scale of the reversal is entirely unsurprising. These are essentially volatility plays, as they involve leveraged exposure. Therefore, if Bitcoin is down 3%, they’re down a multiple of that, sometimes four or five times as much. For retail users, it’s a shock a lot of the time, so it probably compounds the downturn when some sell out of fear.”
Shares of Smarter Web Company, a UK-based firm, saw their share price soar after announcing a Bitcoin strategy. However, its share price is down 70%. McCarthy added,
“Until retail users realise that these firms aren’t buying into crypto, rather they’re selling a crypto narrative to pump their equity value, this circle will persist.”
Bitcoin Hashrate Difficulty Surges To Record High
Bitcoin’s hash rate, which measures the network’s total computational power, jumped to $1.12 billion TH/s on September 12, according to data from Bitinfocharts. The Bitcoin network difficulty also jumped to a record high of 136.04 T. The network difficulty measures the computational difficulty for miners to find a block on the blockchain. Mining difficulty rises every 2016 blocks, or roughly every two weeks. It also increases if the hash rate rises. According to CoinWarz, the next adjustment is scheduled for September 18, 2025.
According to Varun Satyam, co-founder of DeFi platform Davos Protocol, the adjustments and windows cause smaller or inefficient miners to scale back operations, while larger or efficient miners hold or accumulate, positioning themselves for a future rally.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is marginally down during the ongoing session as buyers look to push it beyond $116,000. The flagship cryptocurrency has traded in positive territory since Wednesday, and crossed $115,000 on Thursday to settle at $115,540.
According to Galaxy Digital CEO Mike Novogratz, BTC is in a consolidation phase as treasury firms turn their attention to altcoins. The flagship cryptocurrency is trading around 7% below its all-time high, with its price action rangebound between key levels, indicating it could be in a consolidation phase. Novogratz stated that BTC has traded sideways for weeks as treasury companies look to accumulate major altcoins. However, he believes BTC has the potential for one more upswing this year.
“Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot.”
However, analysts expect a recovery soon as ongoing concerns about labor market weakness have strengthened the chances of a rate cut by the Federal Reserve. Markets believe there is an 11% chance the rate cut will be more than the expected 0.25%. The Koebeissi letter noted in a post on X that markets are pricing in a larger rate cut,
“Markets are now pricing in 75 basis points of rate cuts by year-end. While CPI inflation continues to rise, the labor market is simply too weak to ignore. Next week will be a big week.”
BTC registered a sharp drop on Friday (August 29), dropping nearly 4% to $108,378. The price recovered on Saturday, rising 0.41%, but was back in the red on Sunday, falling 0.53% to settle at 108,247. Price action was positive on Monday as BTC rose almost 1% to cross $109,000 and settle at $109,240. Bullish sentiment intensified on Tuesday as the price rallied, increasing 1.84% to cross $111,000 and settling at $111,247. BTC posted a marginal increase on Wednesday, rising 0.46% to $111,756. Despite the positive sentiment, the price lost momentum on Thursday, dropping to an intraday low of $109,321 before settling at $110,720.
Source: TradingView
BTC rallied to an intraday high of $113,390 on Friday but could not stay at this level. As a result, it fell to $110,670, ultimately registering a marginal decline. Price action was mixed over the weekend, with BTC falling 0.41% on Saturday and settling at $110,212. It recovered on Sunday, rising nearly 1% to reclaim $111,000 and settle at $111,129. Buyers retained control on Monday as BTC reached an intraday high of $112,940. However, it could not remain at this level and fell to $112,072, ultimately rising 0.85%. BTC lost momentum on Tuesday, dropping 0.47% to $111,549. Bullish sentiment returned on Wednesday as the price rallied, rising over 2% to cross $113,000 and settle at $113,983. Buyers retained control on Thursday as the price rose 1.37% to cross $115,000 and settle at $115,540. The flagship cryptocurrency registered a marginal increase on Friday, crossing $116,000 and settling at $116,106. However, it finds itself marginally down during the ongoing session, trading around $116,065.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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