What is behind the recent Bitcoin price drop?
The price of Bitcoin has seen a significant drop, breaking the $60,000 barrier.
This phenomenon has been driven by the turbulence in the tech market, with giants such as Intel and Samsung recording massive losses and layoffs. Intel shares, for example, fell by 30% after reporting losses of $1.6 billion and the layoff of 15,000 employees.
This has triggered a chain reaction, affecting other key tech companies, and consequently, Bitcoin due to its relationship with the hardware and mining sector.
The $BTC ETFs have also seen a considerable capital outflow, with $237 million recently withdrawn. However, Samson Mow, CEO of JAN3, suggests that this is part of a portfolio adjustment and not a loss of confidence in Bitcoin.
Although this drop may seem alarming, some analysts, such as Michaël van de Poppe, believe that it is just a consolidation phase before reaching new highs, supported by an upward trend in Bitcoin's market cap.
Furthermore, geopolitical factors such as the potential conflict between Iran and Israel and the outcome of the US presidential election, where candidate Donald Trump is pro-cryptocurrency, could play a crucial role in the future direction of the price of $BTC . Therefore, although the recent drop is significant, the long-term outlook for Bitcoin remains promising, as long as these temporary challenges are overcome.
In the meantime, the current consolidation could be an opportunity to prepare for Bitcoin's next rise.
⭐ Disclaimer:
The information and opinions in this article are for educational purposes only and should not be considered as investment advice. Investing in cryptocurrencies carries risks and may result in financial losses.