As Bitcoin faces a price decline, experts discuss possible reasons for the cryptocurrency's loss of value and its future outlook.
Bitcoin Price Decline
Currently, Bitcoin is trading at $113,721, marking a 1.5% drop in the last 24 hours. The cryptocurrency has faced more than a 5% decrease over the week, placing it in the red for the month.
Asset Sell-Off and Consequences
The decline in price is linked to active selling from both long-term holders looking to secure profits and short-term investors facing losses. According to CryptoQuant, approximately 50,026 BTC, worth about $5.69 billion, flowed from investors to exchanges in a short period.
Future of Bitcoin
Despite the bearish signals, some analysts believe that Bitcoin may be setting up for another rally. Analyst Rekt Capital notes that the current pullback resembles those that occurred in 2017 and 2021, after which Bitcoin saw significant upward movements.
The decline in Bitcoin's price is caused by multiple factors, including asset sell-offs and weakening market sentiment. However, some assessments suggest that this could lay the groundwork for a future upward trend.
