Bitcoin's price reached $115,663, marking a significant decline from recent highs. The drop has drawn attention from investors and analysts, raising questions about its causes.
Galaxy Digital and Bitcoin's Price Drop
Analysts assert that the recent price drop is connected to actions taken by investment firm Galaxy Digital. Nine hours before the price decline, Galaxy Digital transferred 11,910 BTC worth $1.39 billion from cold wallets to exchanges, subsequently selling the assets.
Reasons and Consequences of Price Decline
The drop occurred amid overall market volatility, with Bitcoin's price declining by 2.5% in the last 24 hours. Analysts suggest that decreasing trading volumes and regulatory uncertainties may have also influenced the market. Today, several altcoins experienced price declines as well.
Outlook for Bitcoin
Analyst Merlijn described the recent price drop as a 'textbook correction' triggered primarily by selling pressure. He believes that the price could start rising again as a bullish pattern has formed on the chart, indicating a potential reversal. The target for Bitcoin is set at $140,000.
The recent decline in Bitcoin's price raises many questions among traders, and while Galaxy Digital's actions have drawn attention, there are multiple factors affecting the market. Anticipations regarding the upcoming Federal Reserve meeting may significantly impact the market's direction in the near future.
