Bitcoins [BTC] Losses reached +$10k, after falling from the most recent all-time high of $73.7k to a low of $62.9k, at the time of writing.
As the US FOMC (Federal Open Market Committee) meeting approaches this week, 99% of interest rate traders surveyed expect the Fed rate to remain unchanged at 525 – 550 basis points. Clear communication from the Fed on when to expect rate cuts could be bullish for risky assets like Bitcoin.
While key industry figures remain bullish for the long term, they have cited several reasons for the recent retracement.
Bitcoin Reaches $125,000?
In a recent one interview At CNBC TV, Jason Urban, Global Head of Trading at Galaxy Digital, claimed that BTC could consolidate before hitting a new all-time high before the end of the year.
“You need healthy price discovery and healthy market action. And so a little bit of a retracement here, off the $73,000 highs.”
Additionally, Urban noted that BTC could enter a consolidation phase before building enough momentum to seek new highs around $125,000.
“I think you’ll see a steady build-up. It builds a base here and then suddenly starts to really drive higher. So I play the diplomat and say $120,000 – 125,000.”
On the recent retracement with the cryptocurrency extending weekend losses, Urban added:
“A little retracement is okay.”
Thomas Perfumo, head of strategy at Kraken Exchange, also said something similar while maintaining a bullish long-term outlook.
Is BTC’s Retracement a Buying Opportunity?
As the world’s largest cryptocurrency continued to lose value over the past week, Crypto.com CEO Kris Marszalek called retracement “a healthy move, removing leverage built up in the system.”
Ergo, Urban’s expectation of consolidation ahead of another leg of the rally could mean the retracement is a ripe buying opportunity. On the contrary, it could also be a pitfall if BTC falls even further on the charts.
At the time of writing, BTC was on the verge of falling below $63,000 as traders awaited the US Fed meeting and interest rate announcement. Only time will tell which executive was right all along about Bitcoin’s future movements.
