The crypto markets saw a sharp pullback on Friday, with Bitcoin’s price tumbling from around $70,000 to as low as $67,000 before paring some losses. This drop triggered over $100 million in long positions being liquidated in just 12 hours, according to data from CoinGlass.
Analysts view the correction as a healthy breather after Bitcoin’s meteoric rise to new all-time highs. Strong U.S. inflation data and concerns about reduced liquidity ahead of next month’s mining reward halving are cited as potential catalysts.
“The surge in prices was too fast for the market to digest properly,” noted Greta Yuan of VDX exchange. Some also worried the launch of BlackRock’s bitcoin ETF could lead to a destabilizing price spike.
However, the dip is expected to be short-lived if spot ETF demand remains robust. QCP Capital reported strong investor interest in bullish bitcoin options for year-end, suggesting many still anticipate further upside.
While volatility may persist, many see this as a pause before Bitcoin’s bull run potentially continues after the halving event in the coming weeks.
