According to experts, the market was experiencing a very fast pace of optimism, which left prices vulnerable to corrections like this.
For Edward Chin, an analyst at Parataxis, the current movement appears to be russia whatsapp number code a typical “profit-taking”, when investors sell to secure accumulated gains.
It wasn't just Bitcoin that felt the impact of this instability. Other major cryptocurrencies also recorded significant losses.
Ethereum, the second-largest digital currency, has fallen more than 15%. Dogecoin, known for its history of high volatility, has lost about 26% of its value in the last 24 hours.
Smaller tokens such as Avalanche and Cardano saw drops of more than 20%.
These numbers reflect the nervousness of the market, which tends to react more intensely in times of uncertainty.
What to expect from the market?
Despite the fall, Bitcoin still has significant growth potential in 2023, especially after political events in the United States, such as Donald Trump's victory in the presidential elections.
However, recent volatility shows that investors should proceed with caution in the short term.
According to analysts, the downward movement does not mean that the market will collapse, but rather that the bullish momentum has lost strength.
This is common in periods of adjustment, when the market tries to find a new balance.
“This type of correction is natural, especially after such rapid rallies,” explained Strahinja Savic of FRNT Financial.
Still, it's important to watch how the market reacts in the coming weeks, especially with the US economic outlook in focus.