Bitcoin Drop Warning: What is the New Bottom Level?

The world's largest cryptocurrency, Bitcoin (BTC), continues to worry investors with its sharp decline in value over the past weeks. Especially with the data recorded on Friday, Bitcoin fell to its lowest level in six months, dropping below 100 thousand dollars.

During this process, it faced a decrease of about %20 from the level of 126 thousand dollars recorded on October 6. According to analysts, one of the main reasons for this decline is seen as early-stage investors making large-volume sales. Furthermore, according to recent data, long-term investors have sold more than 1 million Bitcoin since the end of June.

The increase in leveraged positions is also significantly affecting market volatility. Leveraged trading allows investors to trade larger amounts, increasing market activity, but it also substantially raises the risks. During this period, how major institutional investors and funds supporting Bitcoin are affected by the ongoing turbulent times is being closely monitored.

Analysts indicate that such price corrections are frequently observed in the cryptocurrency markets, and investors looking for an exit are viewing the situation as a positive investment opportunity. However, there are also warnings that investors should be cautious and that a potentially larger correction may be on the horizon.

In the long-term perspective, looking at the history of Bitcoin markets, it has been observed that significant gains have been achieved after similar sharp declines in the past. However, under the current conditions, investors need to maintain a composed approach and strike a proper balance with psychological effects.