Bitcoin's recent surge to nearly $90,000 has ignited a wave of excitement, but a sudden 4% dip has left many wondering whether a correction is imminent.
Retail interest in the cryptocurrency has reached record levels, raising concerns among analysts who warn that a potential pullback could be on the way.
One such analyst, Ali Martinez, points out a troubling historical trend: when Bitcoin’s search interest spikes, significant price drops—sometimes as steep as 50%—often follow.
Martinez believes that the current flood of retail investors into Bitcoin could signal the market is nearing its peak.
Drawing comparisons to 2021, when similar surges in search activity preceded sharp price reversals, he suggests that the influx of inexperienced buyers may make the market more vulnerable to downturns. In these instances, more experienced investors often take advantage of the hype by cashing out, leading to a price correction.
With Bitcoin’s price showing signs of hesitation, Martinez urges investors to be cautious. He advises against buying based solely on price momentum or popular trends, instead recommending a more strategic approach that takes Bitcoin’s notorious volatility into account.
Bitcoin soared to a new all-time high above $119,000 on July 13, extending its bullish momentum on the back of institutional accumulation, shrinking exchange reserves, and technical breakout patterns.
A major shift in the crypto cycle may be approaching as Bitcoin dominance (BTC.D) once again reaches critical long-term resistance.
Galaxy Digital CEO Mike Novogratz reignited a long-running feud with economist and gold advocate Peter Schiff after the latter criticized Биткойн yet again.
Gold advocate Peter Schiff issued a stark warning on monetary policy and sparked fresh debate about Bitcoin’s perceived scarcity. In a pair of high-profile posts on July 12, Schiff criticized the current Fed rate stance and challenged the logic behind Bitcoin’s 21 million supply cap.