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Bitcoin Dips Below $67,000 Amid Market Volatility and Correction Expectations

In a turbulent session during Friday’s Asian trading hours, Bitcoin’s value experienced a significant dip, falling as much as 7% to reach a low of $67,000. This decline in the world’s leading cryptocurrency by market cap was part of a broader downturn in the digital asset market, which saw the CoinDesk 20 index—a benchmark for the largest and most liquid digital assets—drop by 6%. According to data from CoinGlass, the cryptocurrency market has been under considerable strain, with more than $100 million in long positions being wiped out over the last 12 hours and $167 million liquidated over the past 24 hours.

This market volatility is not isolated to cryptocurrencies alone; traditional assets have also felt the pressure. Gold and the Nasdaq, Wall Street’s tech-heavy index, have faced declines over the week. The recent pullback in Bitcoin’s price from its record highs has been interpreted by some analysts as a natural consolidation phase, often seen after rapid increases in value. According to Greta Yuan, Head of Research at the Hong Kong-licensed exchange VDX, the swift ascent in Bitcoin prices was too rapid for accurate market pricing, necessitating a correction. Yuan attributes part of the market’s unease to the latest U.S. Consumer Price Index (CPI) data, which dampened hopes for an imminent Federal Reserve rate cut, similarly affecting gold prices.

The looming Bitcoin mining reward halving next month is another factor contributing to market uncertainty. Adrian Wang, Founder and CEO of Metalpha, suggests that the market is adjusting its expectations in light of this event. Concerns have also been raised regarding the historical trading volume of Blackrock’s Bitcoin ETF, with fears that an overly rapid price increase could lead to a flash crash.

However, some market participants remain optimistic. QCP Capital, based in Singapore, believes that any dips in Bitcoin’s price are likely to be temporary. The firm notes that it’s challenging for short-term sell-offs to significantly impact the overall uptrend, especially with continued strong demand for daily BTC spot ETFs. This sentiment is echoed in their observation of robust demand for year-end BTC calls aiming for prices between $100,000 to $150,000. Despite recent fluctuations, a prediction market contract on Polymarket still gives a 38% chance that Bitcoin will exceed $70,000 by noon Friday in the U.S. Eastern Time, reflecting a cautious optimism among some traders about the cryptocurrency’s near-term prospects.



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