Bitcoin’s rally took a break Friday morning as the flagship cryptocurrency’s price dropped 6% overnight to $68,000. It’s unclear what caused the price drop, but analysts consider it a healthy correction.
Bitcoin has been on the rise this year, breaking out of the crypto winter and reaching new all-time highs. This year alone the price has increased by more than 50%, reaching its highest point at $73,000 earlier this week. The jump in the price was primarily due to the SEC’s approval for spot Bitcoin ETFs, followed by the U.K.’s permission to list Bitcoin-linked securities on the stock market. The positive momentum spread across the market, skyrocketing the prices of other cryptocurrencies.
Price could go to $58,000
However, the largest cryptocurrency may be ready for a cool-off phase, experts say. Digital asset analytics firm Swissblock said in a Telegram channel that Bitcoin’s price almost doubled to $38,000 in late January without any significant pullbacks, and so a cooling period may be on the horizon. In a note, Swissblock mentioned that the price of Bitcoin could go to $58,000-$59,000 in the next move, representing a 20% decline.
MicroStrategy is buying more Bitcoin
Amid the volatility of Bitcoin, a software firm and Bitcoin maximalist MicroStrategy is planning to buy more Bitcoins. On Wednesday, it filed to raise $500 million in a convertible debt offering, so that it can buy more Bitcoin. At the time of writing, Bitcoin was hovering at $68,000, a 5.7% drop in the past 24 hours.
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