Bitcoin Price Drops to $62K: What Next? Plunge To $60K or Bounce Back above $65K

The post Bitcoin Price Drops to $62K: What Next? Plunge To $60K or Bounce Back above $65K appeared first on Coinpedia Fintech News

Over $500 million worth of crypto positions were lost in just 24 hours, sending the crypto markets into a tailspin as prices drop sharply. This has made many investors question the future of their investments, wondering if the correction is as brief as experts have been saying.

Everyone was shocked by the recent drop in the value of cryptocurrencies, especially since the market seemed invincible for a while. Among other things, Bitcoin lost more than $107 million. This falling trend shows a big change in investor confidence, from being highly bullish to somewhat bearish.

Even scarier is that many people didn’t see this big correction coming. Just when Bitcoin appeared to be stabilizing above $70,000, the market took a nosedive, and it is currently barely holding on to $63,000.

But despite the current chaos, not all hope is lost. The market has shown signs of potential recovery paths, mainly through the continuously increasing interest in Bitcoin ETFs (Exchange-Traded Funds). Last week alone, these funds attracted over $2.5 billion in new investments, suggesting the start of a bull run driven by institutional investors. This phenomenon, often called institutional FOMO (fear of missing out), tells us that the big players are still willing to bet on Bitcoin’s resurgence.

The new institutional investors’ average purchase price of Bitcoin sits at $56,400, primarily through spot ETFs. Investors who bought in earlier paid around $21,300. If Bitcoin’s price can stabilize above the key buying level of $56,000, there is a chance that it will regain balance and even push for another all-time high. Meanwhile, according to Richard Teng, the current CEO of Binance, there’s still optimism in the air. Teng predicts that Bitcoin could rise above $80,000 by the end of the year.