On Thursday, Bitcoin briefly dropped to over $101,000 before recovering to above $103,000.
Key Highlights:
- Bitcoin reached just above $101,000 before rebounding.
- Altcoins like APT, AVAX, and UNI saw declines of 6%-7%.
- Analysts view this pullback as a correction in a larger upward trend.
The recent crypto rally paused as traders took profits after weeks of gains pushing Bitcoin close to its record high. This consolidation coincided with several U.S. economic data releases, which showed mixed signals regarding business activity but had minimal impact on traditional markets.
Bitcoin fell early in the U.S. session but managed to climb back up later. The CoinDesk 20 Index dropped 3% during this time, with notable declines in some tokens.
“Current pullbacks may be corrections within a broader bullish trend,” said Ruslan Lienkha of YouHodler. As traders began securing profits due to diminished equity market momentum, this sentiment likely affected Bitcoin prices too.
Kirill Kretov from CoinPanel remarked on the potential noise from small price movements, reassuring investors that larger market trends appear healthy with no imminent peaks in sight.
Analysts suggest the broader crypto landscape is influenced by a quiet expansion in private credit, mainly in the U.S. and Europe, as well as a weakening U.S. dollar, which generally leads to increasing Bitcoin prices. However, caution is advised as signs point to changing financial conditions later in the summer.
