Bitfinex analysts expect a significant correction in the main crypto coin
From a peak of $48,700, which was recorded on January 11, the price of the main crypto coin has dropped by almost $10,000. Retail investors believe that by the end of 2024 Bitcoin will fall even lower. This is stated in a report by Deutsche Bank Research.
The bank’s researchers conducted a survey among 2,000 people from the USA, Great Britain and the European Union, which concerned the cost and volatility of BTC. More than a third of respondents are confident that by January 2025 the price of the first digital currency will be less than $20,000.
About 15% of respondents believe that by the end of 2024 the price of Bitcoin will be in the range of $40,000-$75,000.
The excitement around the SEC’s approval of spot BTC-ETFs in the United States in mid-January contributed to the rise of the BTC price to almost $49,000, which was a price record since March 2022.
After that, the price of Bitcoin fell by more than 20%, falling below $39,000. Now, according to Coinmarketcap, the first cryptocurrency costs just over $40,200.
According to Bitfinex experts, Bitcoin is expecting new price drops. Even against the backdrop of the expansion and diversification of BTC markets, analysts predict a significant correction in “digital gold.”
The sharp decline in the price of Bitcoin after the launch of the BTC-ETF contributed to a significant drop in unrealized profits, especially among short-term holders of the asset, analysts explained. This could set the stage for increased selling pressure, particularly among recent buyers, the report said.
“The tendency of this cohort to react more acutely to short-term market fluctuations could intensify selling, and we anticipate the possibility of a further substantial market correction,” Bitfinex said in a report.
Experts believe that critical support levels for Bitcoin are in the range of $38,000-$36,000. These marks are important for assessing short-term market stability and investor sentiment, according to Bitfinex.
