Question #71 ·
What recent price changes has Bitcoin experienced and what caused them?
- Bitcoin climbed above 130,000 USD driven by a sudden retail buying spree in Asia markets
- Bitcoin fell sharply to 110,000 USD because of US bank collapses and failed regulatory approvals
- Bitcoin dropped below 100,000 USD after a major hack on a prominent cryptocurrency exchange incident
- Bitcoin rose to about 126,199 USD then dipped to 120,681 USD due to profit taking Right answer
Why is this the correct answer?
This is correct because Bitcoin’s price spiked when large investors and institutions bought into ETFs, driving the value up to roughly 126,199 USD. As some of these investors sold off their gains, the market saw profit taking, which temporarily pulled the price down to around 120,681 USD before stabilizing. Beginners should understand that sudden buying inflows push prices up, while selling those positions can cause noticeable dips.