Over the past 30 days, Bitcoin has experienced a significant correction, with its price dipping by around 15%. The most notable drop occurred at the end of last week when BTC fell below $54,000 for the first time since February. However, in the days following this decline, the asset has managed to regain some of its losses and is currently trading at approximately $58,800 according to CoinGecko’s data.
The recent price decline in Bitcoin has been attributed to various factors such as the repayment of Mt. Gox creditors, the German government’s decision to sell off a significant amount of BTC, and the halving that took place in April this year. These events have led to increased selling pressure and temporary price suppression in the market.
Despite the recent price dip, many analysts and industry experts remain optimistic about Bitcoin’s future prospects. Anthony Scaramucci, a former White House official and a strong supporter of Bitcoin, believes that the current price drop is temporary and that a fresh bull run could be on the horizon. He has set a price prediction of $100,000 to be reached before the end of the year based on the asset’s long-term fundamentals.
Scaramucci also highlighted the upcoming repayments from the infamous cryptocurrency exchange FTX to its harmed investors. He anticipates that a significant portion of these investors will reinvest their funds into Bitcoin, leading to mass accumulation of the asset and reducing its availability on the market. This scarcity, coupled with rising demand, could drive up the price of Bitcoin and attract more investors to the market.
The Bitcoin Fear and Greed Index, which measures the current investor sentiment, has recently entered “fear” territory. This is often viewed as a potential buying opportunity, indicating that the market may be oversold and the price could be nearing a local bottom. Investors who view this as a signal may take advantage of the fear in the market to accumulate more Bitcoin at a potentially discounted price.
While Bitcoin’s recent price dip may have caused concern among some investors, many believe that the asset is poised for a significant rally in the near future. With strong fundamentals and positive market sentiment, Bitcoin could potentially reach new heights and even hit the $100,000 mark by the end of the year.
