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The Bitcoin market recently experienced a significant downturn, with the price of cryptocurrency plummeting to $64,533. This recession triggered a chain reaction, leading to a 10% crash in altcoins. Despite the initial shock, as Bitcoin rebounded to the $66,000 mark, the market showed signs of stability, although altcoins still dropped by around 12-13%.
Market Reaction to Economic Indicators
After a brief surge, the price of Bitcoin fell to the lower level of $64,000, coinciding with a meeting of the Federal Reserve, which analysts believe was a driving force behind this volatility. Respected cryptocurrency analyst Skew observed changes in trading activity, with traders focusing on the $60,000 to $64,000 range, indicating strong selling pressure from spot sales.
Skew also noted that during these downturns, some institutions were actively engaged in incremental purchases, a move that could signal an impending price rise. These institutions appear to be employing a Dollar-Cost Averaging (DCA) strategy, taking advantage of the lower market prices.
Prospects for Cryptocurrency Recovery
Historically, during bull markets, a 30-40% significant drop is quite common, and the current Bitcoin pullback hasn't even approached the 20% mark. This pattern suggests that long-term investors may benefit from holding positions, even if short-term market sentiment is negative.
Thomas Fahrer, CEO of Apollo, offered insights into the future of Bitcoin, emphasizing the potential impact of Bitcoin ETFs and hedge funds on the market. He predicts that a large influx of capital into Bitcoin could push prices to new highs, especially considering that the active Bitcoin supply on exchanges is around $140 billion, with available supply slightly exceeding $200 billion. Fahrer expects a surge in institutional investment in the coming months and points out that filling the gap at $69,135 on the Chicago Mercantile Exchange is the target for this price. |
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Post time 27-3-2024 15:46:00