Bitcoin saw a significant 3.2% correction after it hit an all-time high of more than $123,000. It fell amid growing profit-taking and growing activity from cryptocurrency whales. BTC currently trades around $116,900, having shown a significant change in market dynamics.
Market Overview and Recent Trends
Its market cap has risen to approximately $2.326 trillion and is ranked number 6 in the world among assets, sources indicate. This is in line with growing institutional investment, such as the latest purchase by MicroStrategy of 4,225 BTC.
Additionally, Bitcoin spot ETF inflows reached $1 billion on two consecutive days, an all-time high level of market participation.
In spite of this optimistic mood, the market remains cautious. The Altcoin Season Index did not budge at 33, which is a reflection that Bitcoin remains the undisputed king with fewer than one-third of altcoins performing better than it over the past 90 days.
Profit-Taking and Whale Activity
Latest statistics reveal that Bitcoin owners made some substantial profit-taking, with about $3.5 billion being dumped within 24 hours. Short-term owners are currently logging a relative buying price of more than $100,000, which also serves as a fundamental support. That elevated basis price indicates that any meaningful price decline below this level would lead to additional selling pressure.
Notice. 14-year-old Bitcoin wallet transferred 40,000 BTC to Galaxy Digital, which is an indication of the power that whale movements have over today’s market. Large transfers typically indicate impending important market events, meaning strategic entry by large holders.
Market Sentiment Analysis
Despite the recent success of Bitcoin, market sentiment is still mixed. Experts note that the Coinbase Premium Index, which indicates U.S. market demand for BTC, has yet to fully reach its highs. That is to say that investor interest has not yet come in completely, leaving more room to grow.
The adjustment in the price of BTC is also consistent with the natural behavior of the market after an overextended rally. The pullbacks are normal, experts say, and present shrewd investors with a chance to reassess their positions.
The recent price correction of Bitcoin is the indication of volatility of the cryptocurrency market. Though it’s stuck around $117,386 after reaching its all-time high, profit-taking, whales, and market sentiment will determine the next direction. Traders need to stay alert, observing closely on-chain signals and market conditions.
