Bitcoin’s 13% Drop: What Does the Future Hold?
The Price of Bitcoin Has Dropped by 13% in the Last 48 Hours
Over the past 48 hours, the price of Bitcoin has experienced a 13% drop, from an all-time high of $73,835 to around $60,000. Such a price correction has caught the attention of investors and experts in the cryptocurrency industry.
Reasons Behind the Bitcoin Price Drop
The decline in Bitcoin prices was mainly due to market overheating, which began before the upcoming Bitcoin halving event, scheduled for approximately 30 days from now. The cryptocurrency market is always susceptible to price fluctuations, largely determined by various factors, including investor sentiment and current market trends.
The Bitcoin Market Situation According to CryptoQuant Report
According to the CryptoQuant report, the bulls in the Bitcoin market have not yet finished their run. The low level of investment flows from new investors indicates that there is still potential for price growth. Furthermore, price valuation metrics suggest that market prices are still below levels seen in previous market peaks.
Bitcoin Price Forecast
Currently, 48% of Bitcoin investments come from short-term investors, indicating that the Bitcoin bull cycle is still ongoing. The CryptoQuant Profit and Loss (PnL) index, based on three on-chain indicators, even suggests that the cryptocurrency market could enter a bull cycle as soon as 2024.
With the upcoming Bitcoin halving, price increases are expected along with entering a parabolic growth trend. It is worth noting that the estimated time remaining until the fourth Bitcoin halving is around 31 days, and mining rewards will decrease from 6.25 BTC to 3.125 BTC.
Bitcoin Price Predictions
Historically, Bitcoin’s supply halving has always preceded a significant price increase in the Bitcoin market. Meanwhile, Standard Chartered Bank has raised its price forecast for Bitcoin from $100,000 to $150,000 in 2024, predicting a subsequent peak price achievement of $250,000 in 2025. These optimistic forecasts introduce additional elements into the analysis of future Bitcoin price scenarios.
