Crypto Market Sees Price Dip After Recent Gains
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The cryptocurrency market took a minor hit on Thursday as many investors decided to take profits after recent price increases. Bitcoin fell to a low of $101,500, raising doubts about whether it will reach new all-time highs soon. However, major cryptocurrencies like Ethereum, XRP, Solana, and Dogecoin dropped, with some falling around 5%.
To this end, analysts say this is a healthy correction, not the start of a larger fall. Meanwhile, changes in the U.S. economy and stock market may affect investor decisions. Therefore, experts believe the market still has strong support and may grow in the long term, but some challenges lie ahead.
Bitcoin’s Support Level and ETF Inflows
Valentin Fournier, a lead analyst at BRN, says the recent price drops are just a “modest pullback.” He believes the $100,000 price point for Bitcoin will act as a strong support level.
As it stands, this means investors may use this price range to buy more, leading to a period of steady accumulation. Fournier also points to strong investments in Bitcoin and Ethereum ETFs (exchange-traded funds) as signs that long-term interest in these assets is growing. However, these inflows give Bitcoin and Ethereum a solid base, making them more likely to stay strong even during short-term dips.
The Global Economy Affects Risky Assets Like Crypto
Ruslan Lienkha, chief of markets at YouHodler, explains that recent global economic developments are affecting risky assets like Bitcoin. However, as trade talks wrap up and investors grow cautious, many are locking in profits. This behavior is not limited to crypto—it is also seen in the stock market.
To this end, the chief believes current rates of interest in the United States and uncertainty in the global market may slow down crypto growth.
As it stands, Bitcoin’s price has been closely following the S&P 500 stock index with a correlation score of 0.86. Therefore, how Bitcoin performs in the future may depend on how well the U.S. stock market does.
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