Bitcoin (BTC) is experiencing a decline following record highs, impacting the entire cryptocurrency market. This article examines the reasons for the drop, current trends, and investor reactions.
Reasons for Bitcoin's Decline
Bitcoin is currently trading around $115,630, down 2.6% from previous days. This notable drop is one of the largest over the past 24 hours following its all-time high of $123,100 earlier this month. The price decline has led to liquidations, with nearly $586 million in long positions wiped out in less than 24 hours. Such dynamics can erode investor confidence.
Outflows from Bitcoin ETFs
Despite some positivity in Bitcoin ETF trading, the week has shown an overall negative trend. Over three days, total outflows reached $285 million, breaking a 12-day inflow streak. Institutional investors appear to be locking in profits after recent highs, which also impacts short-term price trends.
Increased Attention on Ethereum
Ethereum (ETH) is gaining significant attention, surging over 50% this month and attracting large inflows in ETFs, indicating a capital rotation from Bitcoin to ETH and other altcoins. This shift is also reflected in the sentiment on cryptocurrency forums, where discussions are increasingly focused on altcoins.
Analysis shows that despite the current decline, Bitcoin remains in a strong position. It is expected that the current correction may merely be a temporary pause before the market resumes its upward trajectory. Crypto analysts emphasize that maintaining support levels could lead to a continuation of the bullish trend in the coming weeks.
