After a rapid 2-day rally, bitcoin sank by $2,000 in just a few hours. The number one cryptocurrency was steadily moving towards a new record high of $65,000, but BTC began to decline rapidly between 15:00 and 19:00 immediately after the opening of the American session. As of April 15, Bitcoin has stabilized but without significant growth.
Over the past day, the BTC/USD pair has decreased by 2%. On April 15 at around 13:00, BTC was trading at $62,500. At the same time, its daily trading volumes increased slightly to $71.6 billion. After setting a new record, the cryptocurrency went through a slight correction at the time the US session started, which coincided with the listing of the Coinbase shares on the NASDAQ exchange. The company set an initial price for the share at $250, but in the first minutes of trading, the quotes soared by 60% to $350 and the crypto exchange capitalization reached $100 billion.
Despite an overall positive sentiment in the crypto market, bitcoin sank significantly against the background of increased interest in the securities of the crypto exchange. In addition, an analytical report from Glassnode says that BTC holders continue to use the HODL strategy designed for long-term investment. This is proved by the unchanged volume of coins on the market after bitcoin had reached a new high. The lack of strong momentum due to the holder's cautious behavior could be the reason why the price of bitcoin failed to exceed the mark of $65,000 as it could be a pivotal point for BTC. To some extent, bitcoin became the hostage of its own advantage as investors used it for hedging positions in the long term.
However, a sharp outflow of buyers and passive behavior of cryptocurrency holders should not affect bitcoin's upside potential. The reaction to the decline of $2,000 is slightly exaggerated. Taking into account the current rally, BTC will be able to win back its losses during the next growth cycle. The market suffered a local downturn due to the listing of the Coinbase shares, which is likely to be followed by an even more powerful takeoff. The news background for bitcoin remains positive and creates the necessary base for future growth. For example, BTC may soon expect an even greater increase in institutional investors in connection with the latest announcement from WisdomTree. The company said its bitcoin-backed ETP product is being listed on the German Xetra platform. Moreover, in the near future we can expect a sharp increase in investment instruments backed by cryptocurrencies in the European Union. In particular, the Swedish regulator has already allowed the distribution of ETP in the EU area.
The current decline in bitcoin has a short-term nature associated with the correction of the entire market after a powerful impulse has lost its steam. Such a downturn cannot last long, given the information background, positive investor sentiment, and the general ongoing uptrend. Considering the constant growth in the number of new crypto users, as well as the rapid stabilization of the market after the Coinbase listing, another upward cycle can be expected within the next 24 hours. The first digital currency can reach a new all-time high of $65,000 within a few days. Yet, such an early correction casts doubt on whether bitcoin will be able to reach the channel between $70,000 and $75,000 and settle firmly there.
