CryptoQuant: Bitcoin’s pullback is caused by the Fed

Bitcoin BTC $100,819.13 Bitcoin -2.79% Market capitalization $2 trillion VOL. 24 hours $5.5 billion has retreated from recent highs due to a number of factors, including the liquidation of $ 430 million in long positions, concerns about upcoming inflation data and Federal Reserve minutes, and the Thanksgiving holiday on November 28. CryptoQuant experts call this a «respite» before further market movements.

One of the triggers for the decline was the announcement of MicroStrategy’s purchase of 55,500 bitcoins for $ 5.4 billion. Despite the correction, CryptoQuant CEO Ki Yun Ju noted that the current decline is moderate, and the pullback to last week’s levels is a typical reaction to market overheating.

Analysts emphasize that even during significant bull markets, bitcoin has experienced pullbacks of up to 30%. Similar corrections were observed in 2021. At the same time, they advise investors not to panic and avoid selling at local lows while maintaining risk control.

Experts believe that if the positive momentum continues, the bitcoin rate can reach $ 100,000 due to the FOMO effect (fear of missing out). It is also noted that the current selling pressure has not yet reached the level recorded after the previous historical high in March.

Preliminary forecasts by Bernstein analysts also support optimism, predicting a potential growth of bitcoin to $ 200,000 due to catalysts affecting the first cryptocurrency.