Bitcoin loses 11% after hitting new record, but interest remains, analysts say
Even with the correction, bitcoin has managed to stay above $60,000, a resistance level analysts say shows interest remains high
Bitcoin dipped more than 11% Tuesday afternoon in New York after surging earlier in the day to a new record-high price of around $69,170. It’s the first time the largest cryptocurrency has broken an all-time high in 27 months.
Even with the correction, bitcoin ( BTC ) has managed to stay above $60,000, a resistance level analysts say shows interest remains high.
“If previous non-crypto-related ETFs can teach us anything, it is that real growth after an ETF approval can be a multi-year process,” Chainlink co-founder Sergey Nazarov told Blockworks. “After waiting almost a decade for this ETF, I’d be surprised if this core group of holders would choose to relinquish their coins right as Wall Street finally decides to legitimize the space.”
Read more: Bitcoin price surges past $69k to hit new all-time high
Ether ( ETH ) also spiked Tuesday, hitting an intraday high of around $3,816, about 22% below its all-time high set in November 2021. Ether pared gains later in the day, losing as much as 13% to trade around $3,400.
“Active trader positioning in bitcoin now appears fairly long,” Zach Pandl, head of research at Grayscale, said. “Valuations for ether and most other tokens remain below their highs from the previous crypto cycle.”
Read more: BTC price dips after all-time high. Where is it headed next?
While most analysts agree a mild dip is expected after a peak, a combination of headwinds – including bitcoin’s upcoming halving cycle and ongoing elevated interest rates in the US – could position bitcoin for a lasting run, Pandl added.
“It’s fairly obvious [bitcoin’s] price run is driven by new money coming into the market, aided by new and convenient on-ramps,” Noelle Acheson, author of the Crypto is Macro Now newsletter, said. “But that’s only part of the story.”
Bitcoin is increasingly being used as a hedge against inflation, Acheson said, plus the newly-approved spot bitcoin ETFs provide an accessible on-ramp.
Read more: Bitcoin returned to all-time high faster than ever before (almost)
“We are seeing exactly what happens when the market has safe, secure and compliant access to the asset class — and institutions are just getting started,” Nathan McCauley, CEO and co-founder of Anchorage Digital, said.
Don’t miss the next big story – join our free daily newsletter .
- bitcoin halving
- BTC
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Will Musk Face "Reckoning" After the Election? Deutsche Bank: The Tighter the Hashpower, the More Profitable SpaceX; Political Risks Are Overestimated
Deutsche Bank believes that SpaceX's political risks are overestimated by the market—its core contracts are signed by federal executive agencies, congressional intervention is extremely limited, and there are no substitute suppliers in most business areas. The most immediate risk comes from the Texas governor-elect's tough stance on data centers, but tightening compute power supply might actually enhance SpaceX's pricing power and revenues.
U.S. Retirement Funds Could Unlock Billions for Crypto: Are You Willing to Risk These 4 Coins?
Watch Out: Major Token Unlocks Are Coming for 15 Altcoins This Week—Here’s the Day-by-Day, Hour-by-Hour Schedule
After the US stock market plummeted, "Wood Sister" Cathie Wood said: The more the market worries, the more optimistic I become, the bull market is not over
As the Nasdaq falls into a correction zone, Cathie Wood ("Sister Wood") stated that the prevailing market anxiety actually makes her more confident in the continuation of the bull market. She attributes this correction to pressures in the bond market and controversies over AI capital expenditures, but emphasizes that the technological revolution is still ongoing. She also revealed that ARK has used the opportunity to increase its holdings in high-conviction positions such as SpaceX, and expects the stock market to perform well through 2027.
Crypto prices
More
