Bitcoin Experiences Correction After Record Breakthroughs
Bitcoin (BTC) recently hit an unprecedented high of almost $112,000. However, this peak was followed by a 7% dip. The decline, linked to profit-selling, geopolitical issues, and Federal Reserve caution, is seen as a mere pause in a longer upward trajectory.
The selling pressure emerged after Bitcoin saw a 50% increase from its April low to its recent peak. Trade fears also played a role. U.S. and China trade talks have stalled, with former President Trump calling for higher tariffs on chinese goods.
Despite the drop, Bitcoin boasts robust supply and demand. Spot ETF inflows have surpassed $44 billion. Companies,such as GameStop and Trump Media,now hold Bitcoin in their treasuries.
- Bitcoin supply on exchanges has fallen by 57% since March 2020.
- Only 450 Bitcoins are mined daily.
- Miners hold a 2010-era low of 1.74 million Bitcoins.
These factors create a supply crunch, possibly driving the price higher. Technically, Bitcoin’s price chart shows a bullish flag pattern, with a possible target of $144,650.
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