Key Points
- Bitcoin’s losses exceeded $10k, dropping from a recent high of $73.7k to $62.9k.
- Experts suggest BTC could consolidate before hitting a new all-time high, with potential new highs around $125k.
Bitcoin, the world’s largest cryptocurrency, recently experienced significant losses. The digital asset saw its value drop by more than $10k, falling from its latest all-time high of $73.7k to a low of $62.9k.
The U.S Federal Open Market Committee (FOMC) meeting is expected to be a key event this week. According to a poll, 99% of interest traders predict that the Fed rates will remain unchanged at 525 – 550 basis points. Any clear communication from the Fed about future interest rate cuts could potentially boost risky assets like Bitcoin.
Industry Opinions
Despite the recent retracement, many industry leaders maintain a long-term bullish stance on Bitcoin. However, their reasoning behind the recent drop varies.
In an interview with CNBC TV, Jason Urban, the Global Head of Trading at Galaxy Digital, suggested that Bitcoin might consolidate before achieving a new all-time high by the end of this year. He also noted that Bitcoin might enter a consolidation phase before gaining enough momentum to reach new highs of approximately $125k.
Similarly, Thomas Perfumo, the Head of Strategy at Kraken exchange, also maintains a long-term bullish outlook despite the recent retracement. Kris Marszalek, the CEO of Crypto.com, described the retracement as “a healthy move, removing leverage built up in the system.”
However, there are differing opinions on whether the retracement represents a buying opportunity or a potential trap if Bitcoin’s value drops even further. As traders anticipate the U.S Fed meeting and rate announcement, Bitcoin teeters on the brink of falling below $63k. The future movements of Bitcoin, therefore, remain uncertain.
