Bitcoin (BTC), the leading cryptocurrency that had been breaking all-time highs day after day, surpassing $126,000, turned downward on the 7th (local time).
According to Coinbase, a U.S. cryptocurrency exchange, at 6:31 p.m. Eastern Time (3:31 p.m. Pacific Time), the price of one Bitcoin was trading at $121,983, down 2.47% from the previous day. This represents a drop of more than $4,000 from the previous day's all-time high of $126,200.
BTC surged 16% from its late-September low of around $109,000 to recently surpass $126,000, marking the start of a bullish fourth quarter.
However, the continued "overheating" following the short-term surge is interpreted as entering a correction phase. "Last week, accumulated BTC inflows surpassed the May peak," said Beth Lunde, head of research at K33. "Fund inflows into derivatives markets and exchange-traded funds (ETFs) have become overheated." He added, "This surge was driven by extensive long positions (buying positions) betting on price increases without a clear catalyst, which laid the groundwork for a decline. The current situation suggests a temporarily overheated market with a high risk of a short-term correction."
At the same time, Ethereum (ETH), the second largest cryptocurrency by market capitalization, fell 4.23% to $4,502, while XRP fell 4.40% to $2.87.
Solana (SOL) and Dogecoin (DOGE) fell 4.77% and 6.91% to $223.45 and $0.25, respectively.
- Reporter Shin Jung-seop
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