Bitcoin, the leading cryptocurrency in the market, has experienced a slight pullback after weeks of steady growth. Currently trading around $115,630, Bitcoin has dropped approximately 2.6% in the last 24 hours, marking one of the most significant daily declines since reaching its all-time high of about $123,100 earlier this month. This downward trend has also impacted the broader crypto market, with several altcoins and memecoins seeing even greater losses.
The primary reason behind Bitcoin’s recent dip can be attributed to post-rally exhaustion and profit-taking. After a prolonged period of continuous all-time highs, investors are now taking the opportunity to lock in their gains, leading to a cooling off period for the cryptocurrency. Additionally, whales are rotating their funds and large holders are rebalancing their positions, contributing to the downward pressure on the price of Bitcoin.
The recent liquidations in the market have also played a role in driving prices lower. In the last 24 hours alone, nearly $586 million in long positions were liquidated, with Bitcoin accounting for around $150 million of that amount as it dropped towards the $115K mark. These forced liquidations can exacerbate the price decline and create a sense of uncertainty among investors.
Furthermore, outflows from Bitcoin ETFs have also impacted the short-term price momentum of the cryptocurrency. Institutional investors have been cashing out after Bitcoin’s recent highs, and the lack of new inflows has further added to the downward pressure on the price of Bitcoin.
In contrast, Ethereum has been stealing the spotlight in the market after experiencing a significant surge of over 50% this month. With record inflows in ETFs tracking Ethereum and renewed interest from institutional investors, Bitcoin’s dominance is gradually diminishing. Capital rotation towards Ethereum and other altcoins has further contributed to Bitcoin’s decline, as the market sentiment shifts towards these alternative assets.
Macro jitters surrounding U.S. trade policy and uncertainty in the stock market have also impacted Bitcoin’s performance. With key tariff deadlines approaching and unresolved trade talks with major partners, investors are adopting a defensive stance, which is reflected in the cautious behavior seen in both traditional and crypto markets.
Despite the recent pullback, analysts remain optimistic about Bitcoin’s long-term prospects. They believe that the current price action is merely a necessary breather before the cryptocurrency resumes its upward trajectory. Key support levels have been successfully retested, indicating that Bitcoin is still in a strong position for further growth. As long as it maintains above the $119K level on the weekly close, analysts predict a breakout from the current bull flag pattern, signaling potential upside in the near future.