Bitcoin has experienced some declines in recent days. However, these pullbacks might serve as a catalyst for a potential upward trend following significant earlier drops.
To discuss the current situation, Canal E spoke with cryptocurrency expert Daiana Banegas. She explained that the recent decrease in Bitcoin’s price could be viewed as an expected correction driven by significant sell-offs from institutional agents. According to Banegas, the turbulence caused by these massive sales appears to be subsiding, suggesting that we might be returning to a more stable trend. She also pointed out that the adjustment among miners indicates that they are adapting to the new challenges of Bitcoin after its most recent halving, which could help stabilize conditions for a bullish cycle.
In the past week, Bitcoin faced a correction of nearly 11%, Banegas noted. She warned that investors holding short positions are approaching a risky territory. If Bitcoin climbs to $68,000, there could be massive liquidations totaling nearly $1.5 billion. This potential loss arises because these investors may struggle to repay their assets due to the significant price increase, necessitating more dollars to cover their taken loans.
Regarding the current trend, Banegas highlighted an optimistic outlook, mentioning a decrease in large institutional sell-offs alongside a recovery in ETF volumes, which is a positive indicator. She also pointed out a new development in this cycle; despite the adjustments in Bitcoin’s difficulty and the drop in hash rate, shares of mining companies in the United States have increased, suggesting that investors are betting on Bitcoin’s underlying infrastructure.
When asked about emerging technological trends, Banegas explained that the market recognizes that Bitcoin’s processing power can also benefit artificial intelligence. She emphasized the value of Bitcoin’s decentralized and global infrastructure, which operates in areas with inexpensive energy. According to her, Bitcoin mining remains profitable, with around 80% of operations located where electricity costs are low and where long-term energy supply contracts are in place. In this context, Bitcoin mining companies in the United States have seen their share prices increase by more than 20%.
Source: https://www.perfil.com/noticias/canal-e/criptomonedas-cual-es-la-relacion-de-bitcoin-con-la-inteligencia-artificial.phtml
