Bitcoin's price has decreased by 2.6% in the past day, triggering over 300 million USD in liquidated positions. However, analysts believe this is just a short-term profit-taking, not a shift to bearish sentiment.
Market analysis and reasons for the decline
After reaching a new all-time high, $BTC has dropped to the 115,192 USD mark. Derivative data suggests that the price decrease is not due to new bearish sentiment, but rather because traders are closing profitable positions. Uncertainty regarding geopolitical situations, such as the Russia-Ukraine conflict, also contributes to market caution.
Macroeconomic factors and positive outlook
Despite the adjustment, analysts remain optimistic about Bitcoin's future.
Policy of #Fed : The upcoming speech by Fed Chair Jerome Powell on Friday is considered 'very important' to determine the market's direction in the next three months. With Stephen Miran being nominated to the Fed board and market consensus, the likelihood of an interest rate cut in September is high. Lower interest rates will increase the attractiveness of risk assets like cryptocurrencies.
Investor behavior: On-chain data shows that investors are actively 'buying the dip,' a sign of strong confidence in long-term price potential. The last time this data appeared, Bitcoin's price rose nearly 12% in the following 11 days.
In summary, the combination of macro signals and positive investor behavior suggests that the overall market outlook remains bullish, and a new growth phase may be imminent.
Source: #Decrypt
