Bitcoin’s value, which soared to $70,000 last Monday, was anticipated to hit a new all-time high. However, the cryptocurrency faced a downturn, plunging to $63,000 amid the Federal Reserve’s decisions and geopolitical tensions. The situation worsened when the Japanese economy took a historic dip, causing Bitcoin to briefly drop below $49,000 yesterday. Today, the market witnessed a minor rebound, with an optimistic outlook from a market analyst.
Market Analyst’s Comments
Following the significant market declines on Sunday and Monday, crypto analyst Credible Crypto shared insights on X about Bitcoin’s recent activity. He noted that Bitcoin experienced a “nice wipeout” in open interest (OI), which tracks the total number of outstanding derivative contracts.
The analyst explained that the elimination of open interest signifies the removal of excessively leveraged trades. This is generally seen as a bullish signal for assets in an uptrend.
How Much is Bitcoin Now?
Currently, Bitcoin has rebounded from its low of $48,800. At the time of writing, BTC is being traded at $56,600, marking a 3.82% increase. The market cap has also recovered to $1.17 trillion.
Key Takeaways
Important points to consider from the recent Bitcoin market activity:
- Bitcoin fell significantly from $70,000 to below $49,000 due to various economic factors.
- Open interest wipeout is considered a positive sign for a bullish trend.
- The market is showing signs of recovery with Bitcoin trading at $56,600.
- Market cap has returned to $1.17 trillion.
- 24-hour trading volume decreased by 49%, falling to $53.3 billion.
The recent market correction appears to be a temporary dip, with a medium to long-term positive outlook according to experts.