Bitcoin cools off after record highs, ETH slides as investors book profits

Bitcoin (BTC), after a continuous march into uncharted price territory and scaling past the $123,000 level for the first time in history, appears to be taking a breather as its price has declined nearly 5 per cent from its peak. Market analysts attribute this pullback to profit-taking among investors at higher levels.

 

Last check, Bitcoin was trading at around $117,374.39, lower by 4.17 per cent, with a 24-hour trading volume of $149.68 billion. Bitcoin's all-time high stood at $123,091 on CoinMarketCap, scaled on July 14 this year. The flagship cryptocurrency’s market capitalisation stood at $2.2 trillion, highest among all cryptocurrencies.  ALSO READ | Bitcoin hits record high as US lawmakers push for pro-crypto legislation

Experts weigh in

The correction in Bitcoin, Piyush Walke, derivatives research analyst, Delta Exchange, said, is likely driven by profit-booking among investors. That said, despite the price dip, ETFs recorded substantial inflows – approximately $300 million for Bitcoin and $260 million for Ethereum (ETH), highlighting continued investor confidence.

 

From the technical points of view, Walke believes that $116,000 now stands as a key support level for Bitcoin. "A breach below this could open the door to further downside toward $112,000," said Walke.

 

Vikram Subburaj, CEO of Giottus, believes that crypto markets may need to cool off this week before rallying again. "Spot ETF inflows continue to exhibit a strong trend and will be the key factor in Bitcoin's rally towards $125,000," said Subburaj, adding, "Retail participation has not yet peaked, with the Crypto Fear and Greed Index holding at 74. Typical bull rallies lose steam when this metric hits 80."

Altcoins trade lower

Ethereum was trading lower by 3.52 per cent at $2,979.54, with a trading volume of $26.97 billion. It has traded in the range of $2,934.37 – $3,079.99 in the last 24 hours. Ethereum's market capitalisation stood at $359.54 billion, marking it as the world’s second-largest cryptocurrency by market capitalisation.

 

That said, Ethereum is nearly 39 per cent lower from its all-time high of $4,891.70, scaled on November 16, 2021.

 

Among other popular altcoins, Cardano (ADA) was trading lower by 3.86 per cent, followed by Solana (SOL) down 3.66 per cent, Binance Coin (BNB) down 2.4 per cent, and Ripple (XRP) down 1.27 per cent.