Crypto World Report:
Recent analysis from Bitfinex indicates that the current decline in Bitcoin’s value is primarily due to a slowdown in institutional buying during the holiday period. Exchange analysts also point out that long-term investors have been cashing out their Bitcoin, contributing to the typical summer market sell-off. Consequently, substantial institutional buying and sales from Mt.Gox and the German government have further depleted liquidity. Despite these short-term challenges, experts remain optimistic about Bitcoin’s long-term prospects.
Should you avoid panic selling?
The cryptocurrency market recently experienced a significant 15% drop, with over $350 million exiting the market. Amidst this downturn, Bitcoin and various altcoins hit their lowest points since February, breaking monthly support levels. While this 28% correction may seem concerning, experts view it as a routine event occurring multiple times in each market cycle. Bitcoin pioneer Adam Back emphasizes the importance of not succumbing to panic selling, noting similar 30% drops during previous bull markets. Visit NEWSLINKER for the latest tech news.
What are the experts’ predictions for Bitcoin’s future?
Renowned analyst Rekt Capital believes Bitcoin is following historical trends and could peak around September or October 2025. He explains that the current correction is crucial for the market to readjust historical models. Charles Edwards, founder of Capriole Fund, echoes this view, suggesting that this correction was overdue following Bitcoin’s longest winning streak. Il Capo Of Crypto stresses the need for calm and advises against panic selling.
Practical insights
View the current dip as a potential long-term buying opportunity. Institutional purchases through spot Bitcoin and Ethereum ETFs may provide bullish momentum. Keep an eye on the upcoming U.S. elections for their impact on the cryptocurrency landscape. Note that the $16 billion payout to FTX customers could affect market dynamics. Year-end seasonality and election-year dynamics may favor cryptocurrency liquidity.
Crypto analyst Miles Deutscher sees the current market dip as an optimal long-term buying opportunity. Despite short-term selling pressure from Mt.Gox repayments and German government sales, he highlights bullish indicators such as institutional buying, potential regulatory impacts from the upcoming U.S. elections, and significant repayments to FTX customers. Will Clemente of Reflectivity Research further emphasizes liquidity trends favoring cryptocurrencies, especially considering year-end seasonality and election factors. Bitcoin pioneer Samson Mow reiterates that current selling pressure is minimal and should not incite panic.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies, which entails risks, and conduct their own research.