Reasons for Bitcoin’s price drop: Bitcoin fell from its peak of 99,609 USD to 91,315 USD, mainly due to the liquidation of 250 million USD in leveraged long positions. This situation indicates traders’ high risk-taking in their derivatives positions, according to Coinglass. However, market indicators show that this correction might be temporary.
Value of long-term investors: Data from Glassnode indicates that long-term BTC investors are also contributing to selling pressure. This trend is reminiscent of March 2024, when profit-taking after unsuccessful attempts to surpass 73,500 USD led to a two-month correction. Despite this, institutional investor interest remains strong.
Bitcoin’s future outlook: Analysts suggest that the recent price drop might be considered a ‘final flush’ before Bitcoin moves towards the 100,000 USD mark. Although prices are temporarily down, strong institutional demand, company adoption, and ETF flows continue to sustain the bull market.
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