Bitcoin (BTC), which gave back its gains in the last week with the correction it experienced in the last 24 hours, fell from $ 73,000 to $ 65,800. Although it has now recovered around $69,000, it spent most of yesterday in the red. While similar declines were experienced in Ethereum (ETH), BNB and XRP, meme tokens Dogecoin (DOGE) and Shiba Inu (SHIB), which are the popular trends of recent times, also received their share of the decline. Meanwhile, analysts announced their expectations.
What is behind the decline in Bitcoin price?
cryptokoin.com According to data, Bitcoin dropped to $ 65,000 in the last 24 hours. While analysts stated that the selling pressure was behind these declines, they said that the February PPI data coming in above expectations doubled the rate of decline. According to experts, the reasons for the decline are shown as follows:
- Selling Pressure: Investors making profits and increasing risk aversion.
- Above Expectations PPI Data: Increased inflation concerns and triggered an escape from risky assets.
- Decrease in Spot BTC ETF Inflows: Decreased buying appetite of institutional investors.
- High Volatility: Fluctuations specific to cryptocurrency markets.
Analyst opinions
Analysts are divided. While some analysts think that the correction will be short-lived, some analysts think that the correction may deepen further. Kuptsikevich, senior market analyst at FxPro, predicts that Bitcoin could suffer further losses in the coming weeks before rebounding. According to the analyst, it remains unclear whether there are enough hot buyers at current levels or whether the majority will prefer to wait for a deeper correction.
If the correction scenario continues, BTC is likely to decline to $65,000 – $65,500 and $60,000 – $60,500. On the other hand, Singapore-based cryptocurrency company QCP Capital said that it is worried about Bitcoin being below $65,000 and Ethereum below $3,000. According to the analyst, the decrease in spot BTC ETF inflows and selling by institutional investors also contributed to the decline.
Statement from Tether CEO and Bitfinex CTO Ardoino
The impact of the Bitcoin halving, which will take place in April, on the price remains unclear. While some analysts think that the halving may trigger the price upwards, some analysts argue that this effect will have a limited impact on the price. Bitfinex CTO and Tether CEO Paolo Ardoino stated that it is difficult to predict the impact of the upcoming Bitcoin halving on the price. According to Ardoino, current demand for Bitcoin significantly outpaces the amount of coins produced by mining.
What does “futures base” indicate for Bitcoin?
Finally, Luuk Strijers, one of Deribit managers, spoke. Strijers pointed to the BTC futures floor. Bitcoin futures base has risen to levels not seen since reaching an all-time high above $68,000 in late 2021. This allows derivative traders to earn significant returns. In the Bitcoin options market, the increase in the number of outstanding calls compared to puts expiring towards the end of March is interpreted as a bullish indicator.
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