Bitcoin has experienced a significant correction, retreating 30% from its all-time high of $109,590 in January to a low of $77,041 between March 9-15. This decline, noted by analysts at Bitfinex, is attributed to selling pressure primarily from short-term holders, defined as those who purchased Bitcoin within the last 7 to 30 days, many of whom are facing unrealized losses. Institutional investment is lacking, as evidenced by $920 million in outflows from Bitcoin ETFs during the same week. Currently trading at around $84,357, Bitcoin has rebounded 9.5% from its low. Bitfinex analysts suggest that the future price action will depend heavily on institutional demand. A historical trend indicates that a 30% drawdown often precedes a recovery, highlighting the potential for price stabilization if institutional flows return. Ongoing macroeconomic challenges, including low US consumer confidence and concerns about inflation, are also impacting the cryptocurrency market.

Source šŸ”—