Why A $9,000 Drop In BTC Doesn’t Matter

March 7, 2024

2 minutes read

Last week, Bitcoin hit new all-time highs of over $69,000. However, the token quickly sold off, dropping as low as $60,000.

While the price has recovered since then, the quick drop in price was enough to scare some investors, but not all were shaken. Some, if not most, Bitcoin investors are still bullish on the token for the long term.

In an interview on CNBC, Anthony Scaramucci Scaramucci, founder of investment firm SkyBridge Capital and former White House Director of Communications, discussed Bitcoin’s recent price fluctuations.

Looking back at the bull run in 2021, Scaramucci said, “You had Bitcoin correct 10% or more 13 times … from $3,800 to $69,000, so this is the first big correction.”

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He also said that since the approval of spot exchange-traded funds (ETFs) in early January, the token is up more than 50%, so “at some point it would had to have had a correction.”

Scaramucci also analyzed other potential reasons for the price to go down, such as a large wallet that sold off Bitcoins that were mined in 2010. The miner was a whale that dumped a ton of seller liquidity into the market and could have contributed to the fall in price.

Scaramucci also discussed the Grayscale Bitcoin Trust (GBTC) ETF, saying, “The Grayscale Bitcoin Trust is dumping because of the high fees associated with it.”

GBTC has fees many multiples higher than other spot ETFs on the market, so many are exiting to invest in the other ETFs. Additionally, arbitrage players are exiting GBTC after its conversion to a spot ETF.

With the different contextual factors taken into account, Scaramucci says that he doesn’t “read too much into this.”

Looking at Scaramucci’s point about past bull runs, some are pointing out that when BTC has reached new highs in the past, it has seen a sharp pullback. Usually within one to two years after the initial highs are broken, Bitcoin sets new highs that stay for several years. If this pattern is followed, according to some, Bitcoin could reach upwards of $150,000 in 2025.

The sale of BTC, according to Scaramucci, was due after a huge run to start 2024. Traders were going to take profits at some point, but this does not mean that Bitcoin is done for. The price has already recovered quickly and is closing in on the $68,000 level. If this trend continues, Bitcoin could set new highs yet again within the week.

For some, the $9,000 fall in the price of Bitcoin is simply a new opportunity to load up on more tokens. “Rich Dad Poor Dad” author Robert Kiyosaki said that if the price of Bitcoin fell quickly, he “would be happy and [he] would buy more.”

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This article Why A $9,000 Drop In BTC Doesn’t Matter originally appeared on Benzinga.com

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March 7, 2024

2 minutes read