Bitcoin’s recent all-time highs have led to a sharp decline in value, taking investors’ profits and causing a pullback in the market. The cryptocurrency is now trading at $116,031 after briefly reaching a record high of $123,000 on July 14. Over the past 24 hours, its price has dropped by about 5%, following a week-long rally that saw it surge 14% higher.
The profit taking is attributed to investors locking in their gains, with long-term holders booking profits of $3.5 billion over the past 24 hours. Analysts believe this is the biggest profit-realization event of the year for Bitcoin. The recent price increase has sparked bullish sentiment in the crypto market, but some are warning that profit-taking is a normal part of such dramatic moves.
Options traders remain optimistic about Bitcoin’s future, with many betting it will trade above $130,000 by September and legislation supportive of digital assets gaining traction in the US Congress. Despite this, most Wall Street firms do not provide ratings or price targets for cryptocurrencies like Bitcoin. Instead, looking at its three-month performance shows that the cryptocurrency has risen 43.72% over the past 12 weeks.
Source: https://www.tipranks.com/news/bitcoin-btc-falls-on-aggressive-profit-taking