Bitcoin (BTC), the first and largest cryptocurrency by market cap, has been on a rollercoaster ride in recent months. After reaching an all-time high of nearly $74,000, Bitcoin price has experienced a significant decline over the past few days.
Bitcoin’s price has seen a sharp decline, dropping below $65k. This significant drop has left many investors and enthusiasts wondering what could be causing such a drastic decline in BTC’s price and if it will continue to dip as it nears the $60,000 mark.
Bitcoin’s Price Decline
Bitcoin, the leading cryptocurrency made a strong beginning this year (2024), gaining momentum following the January launch of 11 Bitcoin ETFs in the U.S. The price surge in demand for these products led to record-breaking inflows, propelling BTC’s price up by over 55% since the beginning of 2024.
The climax occurred last week when the cryptocurrency surged to near $74,000, setting a fresh all-time high. However, the momentum started shifting, and many popular crypto analysts warned that there would be an imminent correction before Bitcoin’s upward trend could resume.
Further, Bitcoin’s price has hit a 15-day low today, dropping below $61k, which represents a 21% decline from its ATH level in less than a week.
Factors Behind Bitcoin’s Price Decline
According to our expert analysis, Bitcoin’s recent decline is attributed to profit-taking by long-term investors and miners. Additionally, new investors who bought in below $30,000 have witnessed their investments more than double in less than a year, contributing to market dynamics.
In addition, the decline can also be attributed to negative inflows into spot Bitcoin ETFs. According to data from BitMEX Research, over a Billion worth of BTC was pulled out of Grayscale’s GBTC fund, which had previously seen consistent growth since its launch in January.
Our Opinion: We believe that this is a healthy and temporary correction and that Bitcoin’s price will continue to trend upward in the upcoming days. Furthermore, with institutional adoption of Bitcoin increasing, we expect more demand for the cryptocurrency, leading to a potential increase in its value.
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Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
