Bitcoin dropped sharply after peaking at nearly 74,000 USD/BTC last week. However, analysts say this digital currency could exceed $80,000 by the end of this year.
Currently, bitcoin price is trading at 62,000 USD. After setting a record, close to 74,000 USD, the price of this cryptocurrency dropped about 16%. This makes bitcoin’s capitalization more than 1,300 billion USD.
Bitcoin’s price slide creates investor anxiety. The correction began last week when many people continuously took profits. Since the beginning of 2024, the price of bitcoin has increased by 70%. Data from data company Crypto Quant shows that the number of investors selling bitcoin for profit has increased dramatically since March 12.
Bitcoin will fluctuate widely before possibly reaching a new peak later this year.
Profit taking led to the liquidation of bitcoin positions on the derivatives channel. According to data from the Coin Glass app, about $122 million was liquidated on centralized exchanges on February 18. Some experts warn investors to be cautious in March as bitcoin’s price action becomes “rocky”, leading to a deviation from the long-term bullish scenario.
It is predicted that investors who own other digital currencies will also witness strong fluctuations before considering profit-taking opportunities. Business Coin Telegraph said that when bitcoin increased sharply, other cryptocurrencies only increased slightly. But if bitcoin falls, a series of digital currencies may “fail”.
Mr. Bartosz Lipinski – CEO of the Cube Exchange trading platform – shared: “In general, it would be reasonable if this price drop only took place for a short time and the recovery appeared afterwards. However, This year’s recession still besets markets, creating barriers to the recovery in ways that investors did not foresee.”
Meanwhile, Mr. Richard Teng – CEO of Binance – commented that bitcoin could continue to break records, surpassing $80,000 by the end of the year as supply decreases and demand increases. But this business leader emphasized that bitcoin will not increase in a straight line but will have unpredictable fluctuations.
Notably, US spot ETFs launched earlier this year played a big role in helping bitcoin recover. Besides individual investors, many financial institutions and large businesses are interested in the bitcoin market, causing demand to increase sharply.
