Bitcoin (BTC) Price Experiences Sharp Correction: Analysis Company Shared Their Price Expectations Going Forward!

NYDIG, one of the leading financial services companies in the Crypto currency markets, evaluated the recent rally of Bitcoin and market indicators in its report this week.

The company stated that Bitcoin reached a new all-time high of $112,000 last week, and this rise coincided with the turbulence in traditional markets. This increase surpassed the previous peak of $109,358 recorded in January.

The report reminds that Bitcoin experienced a sharp correction of 28.2% before reaching this level, indicating that it fell to $74,400 after the "Freedom Day" when Trump started imposing tariffs. However, according to NYDIG, these corrections are a natural part of the upward trend that started at $15,460 in November 2022.

Interestingly, NYDIG data reveals that this cycle is less volatile compared to previous Bitcoin bull markets. In the current cycle, a loss of 10% or more in value has only occurred seven times, while in the previous two cycles, this number was recorded as 13 and 10 respectively. Furthermore, these declines occurred both more frequently and more deeply.

A report indicating that Bitcoin rose by 75% after the last halving on April 20, 2024, showing (1.8x) suggests that this cycle may proceed more moderately compared to the past.

NYDIG, noting that Bitcoin has increased by 7.1 times based on closing prices since its low of $15,450 in November 2022 and by 7.2 times based on the all-time high (, states that a repeat of the nearly 20-fold increases seen in past cycles is not expected, but there is still significant upside potential.

The report states that the perpetual swap and futures interest rates, which are indicators of speculative activities, are currently well below historical levels. This situation shows that the current rally is not fueled by excessive speculation.

Additionally, the MVRV ratio is currently at a level of 2.4x. This ratio remains low compared to previous cycles. NYDIG notes that this indicator has reached levels of up to 4.0x in previous cycles, but these peaks have shown a downward trend in each new cycle.

NYDIG is still indicating a significant upward potential for Bitcoin in possible price scenarios by analyzing the rise ratios from bottom to top.