Can Bitcoin Fall Down to $45,000?
Bitcoin climbed up to $50,000 again, but does this mean its complete recovery? Experts don’t think so. The correlation between the price of Bitcoin and the rise of the open interest for Bitcoin futures was found the previous time it went down. Now the open interest makes more than $15 millions, and this may mean another bearish sign for Bitcoin. At this very moment, the price went below $50,000 again, and this may be it.
Once the open interest hit its maximum, Bitcoin dropped 10% of its value. If it happens again, the first cryptocurrency in the world may go below $45,000. However, this bearish trend will not stay for a long time, although it can be a difficult psychological level for Bitcoin.
As Steve from Upstream Data Inc. recently tweeted, Bitcoin is turning back the Cantillon Effect, and this means a complete reevaluation of the banking system and finance we used to know. Therefore, these factors are considered more important for its price than the short-term corrections.