Bitcoin’s price has been volatile lately, with inflation figures and miner sales having a significant impact on price action. However, market experts are predicting an optimistic outlook in the long term.
Bitcoin recently reached an all-time high of over $93,000 and is currently trading at $90,231. However, today’s pullback has raised concerns among investors. So what are the reasons for this decline?
The latest inflation data from the US has had a negative impact on investor confidence. The Consumer Price Index (CPI) was announced this week at 2.6%, showing an increase compared to previous months. Similarly, the Producer Price Index (PPI) was also above expectations at 2.4%. This data brought to the agenda the possibility of a Federal Reserve rate hike and monetary policy tightening. Such moves usually have a negative impact on risk assets, especially cryptocurrencies like Bitcoin.
The recent sell-off by Bitcoin miners is another factor that is increasing the pressure on the price. CryptoQuant Research Director Julio Moreno stated that 2,000 BTC mined in 2010 were released into the market. This creates a negative atmosphere among market participants and causes downward pressure on the price.
Additionally, there was an outflow of $400.7 million from US Spot Bitcoin ETFs. This suggests that the market is losing traction and investor confidence is weakening. Such large outflows can be interpreted as an indication that the market is becoming less active.
Whales Profit Realization
High price levels are pushing big investors to realize their profits. According to Lookonchain data, 4,060 BTC were sold in the last three days. The total value of these sales was calculated at approximately $361 million. Crypto analyst Ali Martinez evaluated the pressure of these sales on the market, explaining that the amount of realized profit was $5.42 billion. Historically, such corrections are usually seen in bull markets and in the long term, the market tends to recover.
Looking at historical data, it is common for Bitcoin to experience corrections during bull runs. However, experts note that such declines often create attractive opportunities for long-term investors, meaning Bitcoin could be ready to enter a new uptrend.
Bitcoin price fluctuations are affected by various factors such as macroeconomic data, miner sales, and the actions of large investors. It is very important for investors to follow market movements carefully and determine their strategies accordingly. In the long term, Bitcoin's potential for a strong recovery is still on the table.
