Bitcoin (BTC-USD) has faced a significant pullback, plunging as much as 20% over the weekend to below $50,000—a level not seen since February. However, the cryptocurrency has since rebounded by approximately $6,000, though it remains down 14% over the past week.
Despite this downturn, Bitcoin enthusiasts are maintaining their bullish forecasts. MarketVector’s Martin Leinweber believes that Bitcoin could surpass its previous all-time high of $74,000, potentially reaching between $80,000 and $100,000 by the end of 2024. Onramp Bitcoin’s Mark Connors also reaffirmed his earlier prediction of Bitcoin hitting $110,000 in 2024.
Bitwise Asset Management’s Matt Hougan echoed the optimism, emphasizing that Bitcoin investors are long-term holders, resistant to short-term market fluctuations.
Skeptics, however, have raised concerns about Bitcoin’s performance as a haven asset. Critics argue that Bitcoin’s recent behavior mirrors that of risk assets like technology stocks, challenging its narrative as an uncorrelated store of value.
The recent market correction appears to be linked to broader financial movements, including shifts in the US dollar’s strength relative to the Japanese yen. Additionally, Bitcoin ETFs experienced significant net outflows of $168 million on Monday, with trading volumes doubling compared to previous days.
Fundstrat Global Advisors remains confident, projecting Bitcoin could reach $126,000 in 2024. They view the recent decline as a minor setback rather than a market peak.
As Bitcoin continues to experience volatility, market participants will be closely watching trading flows and the impact of new Bitcoin exchange-traded funds managed by major Wall Street firms.
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