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Bitcoin Experiences Significant Price Correction
Bitcoin (BTC) has seen a notable decline of over 7% since April 1, dropping from $70,877.82 to the current price of $65,619.10. Analysts at Bitfinex attribute this correction to a healthy market adjustment following BTC’s surge to new all-time highs, indicating a profit-taking movement.
Market Analysis and Long-Term Holder Activity
Bitfinex’s analysts believe that Bitcoin is likely to continue consolidating within a range, as previously dormant supply, particularly among Long-Term Holders (LTHs), is being sold. They note that the BTC price has continued to appreciate this year, but volatility has increased considerably. This is partly due to strategic profit-taking observed among the LTH cohort, holders of BTC for more than 155 days.
Furthermore, the activation of old supply of LTH after a new all-time high is considered a common movement in previous cycles. This is seen as a testament to the cyclical nature of the market and reflects patterns of distribution and accumulation that underscore investor sentiment and market psychology.
Impact of Stock Market on Bitcoin Price
Ruslan Lienkha, chief of markets at crypto services provider YouHodler, suggests that the stock market may influence the Bitcoin price. He posits that a potential correction in traditional markets could trigger institutional capital outflows from crypto due to investment companies’ formal approach based on asset credit ratings. Despite this, Lienkha still anticipates BTC reaching $80,000 this year, albeit not without more significant corrections.
Market Outlook and Potential Trends
According to YouHodler’s chief of markets, there may be an upward trend in Bitcoin price leading up to the halving, followed by profit fixation and some limited price correction. This suggests that while BTC may experience fluctuations, there is a possibility of reaching higher price points in the future.
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