Bitcoin Faces Price Dip Despite Positive Catalysts
Bitcoin’s price has taken a hit, falling from its all-time high.Despite strong ETF inflows and growing adoption, the cryptocurrency dipped below $120,000 on October 9. This decline comes as a surprise, given the positive factors supporting it.
Experts have differing opinions on this downturn. Some see it as a temporary setback, while others attribute it to deeper structural issues. Ruslan Lienkha, from YouHodler, suggests that the stock market is siphoning off funds from crypto. High equity prices make investors wary of high-risk assets like Bitcoin.
However, this optimism in stocks is based on hopes of easier monetary policies, not real economic growth. Lienkha warns that if U.S. stocks drop, it coudl cause a broader risk-off mood. this might lead to rapid liquidation of leveraged crypto positions, causing further price drops.
On the other hand, declining faith in the U.S. dollar could be good news for Bitcoin. Lower interest rates and a weak U.S. economy are affecting other assets.Gold,as an example,hit a record high of $4,000 on October 8. Nic Puckrin of The Coin Bureau notes that this gold rally might not last. Traders could soon turn to other options, including Bitcoin.
Bitcoin remains undervalued compared to gold. As confidence in conventional assets wavers, crypto could become more attractive. This shift could possibly boost Bitcoin’s price in the long run.
