The largest cryptocurrency, Bitcoin is in the upward trend of the market. In the past week, it hit new all-time highs of over $69,000. But it quickly sold off, dropping as low as $60,000, according to reports. Although the price has recovered since then, the quick drop scared some investors, but not all. Some, if not all, BTC investors are still bullish on the token for the long term.
Former White House Director’s views on BTC
Anthony Scaramucci, founder of SkyBridge Capital and former White House Director of Communications, spoke on CNBC about Bitcoin’s recent price fluctuations.
Scaramucci recalled the bull run of 2021 saying, “You had Bitcoin correct 10% or more 13 times … from $3,800 to $69,000, so this is the first big correction.” Pointing out that since the approval of spot exchange-traded funds (ETFs) in early January, the token has surged more than 50%, so “at some point it would have had to have had a correction.”
A large wallet that sold off Bitcoins mined in 2010 was also analyzed by Scaramucci as another reason for the price drop. It is possible that the fall in price was caused by the miner who dumped a lot of seller liquidity into the market. “The Grayscale Bitcoin Trust (GBTC) is dumping because of the high fees associated with it,” Scaramucci said.
Fees on GBTC are many multiples higher than other spot ETFs on the market, so investors are leaving GBTC to invest in other ETFs. Furthermore, arbitrage players are exiting GBTC after it was converted to a spot ETF. Taking into account the context, Scaramucci says that he doesn’t “read too much into it.”
Can the drop be an opportunity?
Regarding Scaramucci’s point about past bull runs, some are pointing out that Bitcoin has seen sharp pullbacks after reaching new highs. Following the initial highs, Bitcoin usually sets new highs that last for several years after they are broken. By 2025, Bitcoin could reach $150,000 if this pattern continues.
The sale of Bitcoins was due after a massive run at the beginning of 2024, according to Scaramucci. There was going to be a point at which traders would take profits, but Bitcoin is not doomed. With the price already recovering quickly, the level of $68,000 is close to being reached. It is possible that Bitcoin will reach new highs again within the next week if this trend continues.As of now, BTC is trading at $67,297.96 with over 8% surge in the past week, as per CoinMarketCap data.
Many see the $9,000 drop in Bitcoin’s price as an opportunity to buy 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.”
