The cryptocurrency market experienced a sharp decline today, with major tokens such as Bitcoin and Ethereum showing significant losses. Analysis suggests that despite the current decline, there is no panic among investors.
Factors Behind Price Decline
The price decline came after an unexpected $130 million outflow from Bitcoin ETFs, breaking a 12-day streak of steady inflows. This coincided with some traders locking in profits after recent price increases.
Current Situation Analysis
Despite the drop, the market does not seem to be in panic mode. CryptoQuant analyst Axel Adler noted that Bitcoin is still trading within what he describes as the 'growth zone' between the Investor Price Median at $92,000 and the Hype Alert Threshold at $139,000.
> “We’re not in the danger zone of excessive speculation,” Adler stated on social media.
Can We Expect Recovery?
With Fed Chair Jerome Powell's upcoming speech, investor focus is on potential changes in interest rate policies. If rates remain high, it could put pressure on the crypto market. However, current sentiment indicators suggest there is room for Bitcoin to gradually climb, provided prices do not become overheated.
Although the cryptocurrency market has experienced a sharp drop, current data shows that investors are still accumulating assets and panic is absent. This may indicate the potential for stabilization and gradual growth in the future.
