Cryptocurrencies have undergone a brief adjustment.

Kahn332

In fact, Bitcoin has still risen by about two-thirds this year and continues to be supported by several factors.

One of these is the general improvement in stock market performance and risk sentiment. The S&P 500 and Nasdaq Composite indexes are still near historic highs, which has bolstered cryptocurrencies, which have long been correlated with stocks. Traders are also optimistic about the Bitcoin "halving"; next month, the supply of Bitcoin will be reduced, which could boost prices as demand rises.

However, the biggest driver for Bitcoin comes from the introduction of Bitcoin exchange-traded funds (ETFs), which were approved by the U.S. Securities and Exchange Commission in January and have introduced a new wave of investor interest in cryptocurrencies. These funds have attracted billions of dollars in inflows, and their record popularity, as they hold Bitcoin itself rather than just derivatives tracking its price, has had a significant impact on token prices.

Markus Levin, co-founder of the blockchain network XYO, says, "The surge in Bitcoin demand due to these newly launched ETFs is profound and is evidenced by the significant funds flowing into these ETFs every day. While we may see significant pullbacks, I believe this trend will continue in the foreseeable future."

Nevertheless, due to the bubble that has formed in the cryptocurrency market in recent weeks, digital asset prices may further decline. Traders have overwhelmingly been bullish on Bitcoin futures traded with borrowed funds, a dynamic that makes prices susceptible to volatility; if the market changes direction opposite to the positions held by the majority of traders, prices will be affected.

Alex Kuptsikevich, an analyst at the broker FxPro, said, New all-time highs are triggers for selling. Some participants are taking profits, which raises the question of whether there are enough buyers at current levels or if most people would rather wait for a deeper pullback. In terms of corrections, particular attention should be paid to the ranges of $65,000 to $65,500 and $60,000 to $60,500, which are important levels for retail traders.

Jafar224

still need to keep an eye on the information.

Yamini003

Next, it's also about observing what happens next.