Bitcoin recently experienced a near 10% drop, which Bitfinex analysts view as a normal adjustment for market stabilization.
Reasons Behind Bitcoin's Price Drop
On September 27, Bitcoin's price climbed to $66,600, but growth halted quickly due to increasing geopolitical tensions in the Middle East and concerns over the U.S. economy, leading to a 9.94% dip by October 4.
Market Reaction to Price Change
Bitfinex analysts noted that this decline was accompanied by a decrease in open interest from $35 billion to a more stabilized $31.8 billion. Additionally, over $450 million in long positions were liquidated on October 1.
Future Outlook for Bitcoin
Despite the dip, Bitcoin rebounded to $62,650. It is anticipated that the Federal Reserve's expected interest rate cuts in November will bring optimism back to the market.
Analysts caution that it's still too early to draw definitive conclusions about short-term market directions, with investor behavior at the start of trading sessions playing a crucial role.