Bitcoin (BTC) is gaining momentum for the first time in a long time. The Bitcoin price has fallen by more than 6% in the past day, bringing it back below $93,000 for the first time in a week.
After the gigantic rally that Bitcoin has made this month, there is of course little reason to panic with a drop like this. But what is underlying Bitcoin’s price fall?
BTC price drops 8%
After three weeks, the bulls have finally taken their foot off the accelerator. Since November 6, when it was announced that Donald Trump won the American presidential elections, hardly a day has gone by that the Bitcoin price has not set a new all-time high. But in the meantime, investors have to be patient again.
The last record was set last Friday. That was from $99,600 and the price has since fallen considerably. Bitcoin has fallen 6.50% in the past 24 hours, making it available for less than $92,000 each. That is about 8% cheaper than at Friday’s peak.
Bitcoiners take their profits
Earlier today you could read in the Bitcoin news that the US Bitcoin spot Exchange-Traded Funds (ETFs) yesterday saw one of their worst days since their launch in January. The stock exchange funds lost $435.3 million and this selling pressure is logically not good news for the Bitcoin price.
In addition, long-term holders have largely taken their profits. On-chain analysis agency Glassnode wrote on social media platform X yesterday that this group of investors, who have owned Bitcoins for at least 155 days, have already sold 366,000 Bitcoins this month. They have not dumped so many bitcoins on the market since April this year.
In particular, Bitcoiners who have held their coins for between six and twelve months have left the market after the gigantic rally. And don’t blame them: the Bitcoin price has made a total increase of almost 50% this month.
Many new investors who entered at the top due to FOMO are now suddenly deeply under water. But a correction like this is part of life. The Bitcoin price never goes up in a straight line and in the previous bull market we regularly saw declines of more than 20%.
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Source: https://newsbit.nl/bitcoin-koers-daalt-hard-tot-onder-de-92-000-dit-is-waarom/
