Bitcoin Set for $100,000 Recovery After Recent Pullback, Analyst Says

NEW YORK, NY — Bitcoin is showing signs of recovery and could approach the $100,000 mark again, according to a recent analysis from financial services firm BTIG. Analyst Jonathan Krinsky noted that after a steep 36% decline earlier this month, Bitcoin is poised for a ‘reflex rally’ back towards $100,000.

As of now, Bitcoin is trading around $92,451, up nearly 10% over the past five days. However, it is still down about 20% from last month due to a mix of macroeconomic concerns and shifts within the cryptocurrency market.

Investors are currently moving money from higher-risk investments to safer assets, such as gold, influenced by worries about high valuations in the artificial intelligence sector. Krinsky mentioned that mixed economic data from recent federal reports is leading traders to act cautiously.

Additionally, long-term Bitcoin holders have been selling their positions, aligned with the belief that Bitcoin’s price trend follows a four-year cycle tied to scheduled supply reductions on its blockchain. Despite these challenges, Bitcoin appears to be on track for regaining some of its value by year-end.

BTIG also highlighted that Bitcoin mining firms, Cipher Mining and Terawulf, have been showing resilience during this pullback. Cipher Mining shares have risen 35% since Monday, while Terawulf is up 31% in the same timeframe.

Bitcoin’s rival, Ethereum, is also making a comeback, trading at $3,075.62 after a 13% increase over the past five days. Analysts believe Ether could climb back to the $3,400 threshold based on current trends.

Overall, as Bitcoin aims for a comeback near $100,000, the overall sentiment in cryptocurrency appears to be shifting as market participants monitor ongoing economic indicators and adjust their investment strategies accordingly.