- $6,600 Bitcoin drop follows US Treasury remarks and market turbulence.
- Potential Q4 upside after market correction.
- Institutional outflows and macro factors impact market stability.
Bitcoin faces renewed correction risk as its price uptrend, initiated in July, enters its seventh week following a $6,600 drop prompted by US Treasury announcements.
This correction signals potential consolidation before a possible Q4 recovery, highlighting volatility influenced by macroeconomic and institutional factors.
Bitcoin is facing renewed correction risk after a price drop coinciding with market turbulence, specifically a $6,600 loss, followed remarks from the US Treasury, impacting the crypto market.
The involvement of key figures such as Treasury Secretary Scott Bessent, who emphasized “The Treasury seeks ‘budget-neutral’ reserve growth options, not direct purchases“, played a crucial role. Former Head of the Presidential Working Group, Bo Hines, also drew attention with his resignation.
The immediate effect was reflected in $963 million liquidations as investors reacted to Treasury statements, illustrating macro-driven volatility. Meanwhile, institutional flows showed fragility, with $1 billion in outflows recorded, indicating cautious participation.
Financial implications are significant with BTC prices retracing from July highs, affecting related assets like Ethereum. On-chain analysis points to strong hands holding despite market fluctuations, emphasizing enduring investor confidence.
Historical precedent suggests potential consolidation before a Q4 uptick, mirroring previous halving-cycle corrections. Noteworthy is the multi-week price uptrend, akin to previous bull phases, leading to substantial corrections.
Experts, including CryptoQuant’s Oinonen, describe the current phase as a technical correction within a longer bullish framework. Historical trends and technical data reinforce expectations of BTC stabilization and possible recovery before year’s end.
Oinonen, Analyst, CryptoQuant, remarked, “Current weakness is a technical correction within a longer-term bullish structure, emphasizing the importance of price discovery and fair value establishment.”
