An analyst has warned that Bitcoin’s recent liquidation event may not be finished, with remaining leverage potentially pushing prices somewhere between the $70,000 to $80,000 zone.
Texas has also allocated an additional $5 million for direct, self-custodied Bitcoin, signaling growing state-level adoption in the US.
Bitcoin reclaimed $86,000 as the US dollar strengthened, but one analyst warned the rally may be structurally weak.
Bitcoin found its latest floor when it dropped to almost $80,000 last week, according to the BTC price prediction by ex-BitMEX CEO Arthur Hayes.
Bitcoin analyst James Check argued Bitcoin’s quantum risk is chiefly a consensus dilemma — not a tech one — because the network is unlikely to freeze legacy coins.
Crypto investment products neared $5 billion in outflows in the last four weeks, but late-week inflows show early signs of improving sentiment despite heavy selling, CoinShares said.
Bitcoin’s Sharpe ratio has fallen to nearly zero, matching levels from 2019, 2020, and 2022 market bottoms, as 8% of all BTC moved onchain in historic volatility.
Bitcoiners aren’t new to 30% drawdowns, but it could be a first for many Wall Street investors, said crypto commentator Anthony Pompliano.
Mining margins weakened as hash prices declined and rig payback periods stretched, even as listed miners rallied on analyst upgrades and new HPC agreements.
One analyst said Bitcoin’s dip to $80,000 marked the bottom and that there was a 91% chance the current trend reversal would send BTC price back to $118,000.