Bitcoin Price Plunges by 14.8% in a Week
The price of Bitcoin has experienced a significant drop, falling by 14.8% over the past week. This decline comes after the leading cryptocurrency reached an all-time high of $73,750 just six days ago on March 14, 2024. The decrease in Bitcoin’s price has also caused the entire cryptocurrency market to drop, resulting in a 5.04% reduction in market cap to $2.29 trillion over the last 24 hours. With Bitcoin hitting a low of $61,000, investors are now questioning whether the recent rally has come to an end.
Bitcoin Price Market Performance
Despite experiencing significant growth this year, with a 123% increase so far and an 18% increase in the last month, the value of Bitcoin decreased by 5.28% in the previous day to reach $61,380.13. However, there was a notable uptick of 30.07% in its 24-hour trading volume, indicating strong trading activity in the market. Although its market capitalization decreased by 5.25% to hit $1.21 trillion.
Reasons Behind BTC Price Fall
There are several factors contributing to the fall in Bitcoin’s price:
- The slowing down of Bitcoin ETF flows has led to selling pressure on BTC as short-term investors take profits.
- Over $640 million in BTC was withdrawn from Grayscale’s spot Bitcoin ETF GBTC on March 18, marking the biggest day of withdrawals since its trading began.
- On-chain data from CryptoQuant shows that users holding BTC for less than five months have been taking profits, contributing to the selling pressure.
- The recent sell-off in BTC was accompanied by $650 million in crypto liquidations, with long liquidations reaching $515 million in the last 24 hours.
Bitcoin Price Expected to Bounce Back
Analysts at Bernstein believe that Bitcoin’s recent drop presents a temporary opportunity to buy the dip. They see this phase of consolidation as brief and suggest buying before the upcoming halving event in April. Despite outflows from Grayscale’s GBTC fund, analysts remain confident in Bitcoin’s long-term potential and project a price of $150,000 by 2025.
The market is expected to consolidate before the halving, with the overall bull market likely to continue. While ETF flows may be affected by price action, the recent correction in Bitcoin’s price is viewed as healthy and in line with historical trends. Analysts remain optimistic about the future of Bitcoin and the cryptocurrency ecosystem as a whole.
Parabolic Phase Ahead
According to analysis by Rekt Capital, Bitcoin is currently in the pre-halving retracement stage, which typically occurs 28 to 14 days before the expected halving event. This stage is followed by a period of stability or flattening known as re-accumulation. After this consolidation phase, Bitcoin transitions into a parabolic uptrend characterized by a significant increase in price and new all-time highs.
BTC Predicted to Reach $150,000 in 2024
Standard Chartered Bank has increased its prediction for Bitcoin’s price at the end of the year to $150,000, up from $100,000. The bank also forecasts that BTC will hit a peak of $250,000 next year before stabilizing at around $200,000. The bank conducted its analysis by comparing the price of gold following the introduction of gold ETFs in the U.S. and examining the correlation between Bitcoin price and ETF inflows.
Conclusion
The recent decrease in Bitcoin’s price has raised speculation about the end of the ongoing rally. However, analysts view this drop as a short-term decline and an opportunity to buy before the upcoming halving event. Based on past patterns and economic forces, it is expected that Bitcoin will recover and potentially reach $150,000 by 2025. Investors should remain informed, track important metrics, and consider the long-term possibilities despite short-term changes in the cryptocurrency market.
By
By
By
By
