Bitcoin Value Might Dip More Before Rising Again, With Just 9% of Coins Incurring a Loss
Bitcoin, the world's leading cryptocurrency, has been on a rollercoaster ride lately. After hitting an all-time high of over $124,000 on August 14, 2021, the digital asset double-dipped to $107,500 earlier this week, marking a 13.4% correction from its peak.
This correction, however, might not be as severe as some previous cycles. Unlike in 2017, when Bitcoin fell 36% in September, or in 2021 when it dropped 24% this month before recovering, institutional investors seem to be providing significant buy support during the downturn.
Notable purchases were made by MicroStrategy, which acquired 3,081 BTC for approximately $357 million by issuing new common shares, and by El Salvador, which increased its Bitcoin reserves by purchasing 21 BTC around the anniversary of its Bitcoin law. These acquisitions have helped mitigate the depth of the correction.
As of now, Bitcoin has climbed back up to $111,500 in Asia, with the $112,000 level being crucial for its current recovery. Michael van de Poppe, co-founder of MN Fund, has stated that the closer we get to the Sept. 17 Federal Reserve meeting, the less likely this correction will continue. If Bitcoin breaks through $112k, the chances of the correction continuing would be less, according to van de Poppe.
On the other hand, entrepreneur Ted Pillows has observed that the recent correction mimics the Q2, 2025 and Q3 2024 dumps when the asset fell by 30%. Pillows also stated that this correction is not the peak of the current cycle, but a normal one before a new all-time high (ATH).
The Federal Reserve meeting on Sept. 17 could play a significant role in Bitcoin's future price movement. As institutional investors continue to show interest in Bitcoin, the digital asset's future looks promising, with many analysts predicting a potential recovery and new ATH in the near future.
In the meantime, Bitcoin's resilience in the face of corrections and its ability to bounce back quickly have been impressive, demonstrating its growing maturity as a financial asset. As always, investors are advised to do their own research and consider their risk tolerance before investing in Bitcoin or any other cryptocurrency.
