Looking at the latest Bitcoin news, the coin is now officially on the third day of a major sell-off since the price dip. It had pulled back by as much as 13% from its current ATH at press time.
Now, key question is what are the reasons behind the retracement and how far can it fall? Bitcoin exchanged hands at $94,510 at the time of observation, which means it was down by over $13,000 in just three days.
In other words, the roughly $270 billion was wiped out of the market from its recent peak on Tuesday.
The extreme selloff was evidence of heavy panic selling in the market. More importantly, this outcome occurred after the latest FOMC meeting during which Jerome Powell revealed that the FED will not buy Bitcoin.
In addition, Powell revealed that only 2 rate cuts will take place in 2025. These statements fueled a bearish outcome and that started out as profit-taking but cascaded into an avalanche of sell pressure.
Traditionally, rate cuts pave the way for more liquidity injection due to easier access. However, inflation has reportedly still high and could be the reason why the market reacted with a bearish outcome.
– Advertisement –
Bitcoin News: Liquidations Surge as Leverage Shake-Down
In addition, the sell pressure triggered a surge in liquidations, thus resulting in a leverage shakedown. Roughly $409.42 billion million worth of long liquidations occurred in the last 3 days.
In contrast, the total short liquidations in the same period amounted to $109.26. But will the bearish trend continue into the weekend?
Heavy profit-taking was bound to take place and is a major reason for the rapid downside the latest wave of sell pressure. But just how far can the sell pressure go?
Fibonacci retracement from the start to the end of its Q4 bullish wave suggests that accumulation could come back between $73,907 and $80,500.
The Fibonacci retracement indicates that sell pressure could continue during the weekend. However, this is dependent on whether demand will stay at bay long enough for the bears to push to that range.
Many investors may see sub $100,000 prices as discounted. However, there those that anticipate prices to fall to the aforementioned range.
This includes former Binance head CZ, who revealed in a recent tweet that he anticipates a dip to $80,000.
Cathie Wood Maintains Heavily Bullish Stance for the Long-Term
Savvy investors such as Cathie Wood, the CEO of Ark Invest are still optimistic about BTC’s long-term prospects, despite the ongoing Bitcoin news and relayed developments.
She predicted earlier this year that Bitcoin could rally above $1 million by 2030 maintains her stance according to a recent Bloomberg interview.
Woods predicted that Bitcoin may achieve a 10X from its current levels. Her price target for 2030 is between $1 million and $1.5 million.
She revealed during the Bloomberg interview that she anticipates an influx of institutional liquidity over the next 5 years.
Woods backed her prediction by noting that pro-crypto regulations will encourage more institutional participation.
In addition, woods highlighted that the 2024 Bitcoin halving made BTC more scarce than gold in terms of annual supply. This makes it attractive as a scarce digital asset.
