What are the Reasons Behind the Decline in Bitcoin (BTC) Price?
Bitcoin (BTC), the leading cryptocurrency , has suffered a serious drop from the $ 60,000 level. It is emphasized that this decline, which comes after Bitcoin broke the all-time record and reached the level of $ 61,700, is actually quite normal.
Bitcoin Price Drops To $ 56,000
With the decrease experienced within 24 hours, the price decreased to $ 56,697. The rise of the BTC price to $ 61,500 last week was entirely thanks to Federal Reserve statements. Although the FED’s announcement that it will keep the interest rates stable and continue this until 2023 brought an increase, what happened in the continuation of this accelerated the decline.
After the FED stated that it will keep the interest rates stable, the interest rate of the US 10-Year Treasury Bonds has also risen sharply and some of the investors may have turned here as in the past weeks. Two weeks ago, the interest rate of the US 10-Year Treasury Bonds rose after the events and the BTC price reacted with a decline.
Why Did Bitcoin Fall?
Another development that puts Bitcoin in a downward trend may be its rise. Although BTC price retested the $ 60,000 resistance, the buying pressure was not enough to overcome it. The BTC price correction of about 10% is much more reasonable than the rally in 2017. Bitcoin fell more than 9% by 30% or more in the 2017 rally, causing the market to be bleeding.
According to Peter Brandt, BTC has entered a parabolic uptrend again, with a similar uptrend to 2017. A similar increase to the one in 2017 indicates that the decreases in that period may be repeated.
Peter Brandt stated that even a 40% drop in the Bitcoin price is normal during a parabolic upturn, adding that investors should be prepared for moves like this.
New Targets For BTC Price
The Bitcoin price is trading at $ 57,337 as of the time this article was written, and it has managed to alleviate its decline in the last 24 hours. If the BTC / USD parity rises above $ 58,000, the rally may resume where it left off. Breaking the $ 60,000 resistance will soon see $ 72,000 in view.
Speaking about the BTC price, Peter Brandt stated that after $ 72,000, the target is $ 100,000 in the medium term. Breaking $ 100,000 will mean BTC’s price at the beginning of the year up to 5 times.