The bitcoin price has demonstrated a minor correction subsequent to achieving a new all-time high on November 5, declining from over $7,500 to $7,270 within the past 24 hours.
Yesterday, CCN reported that the bitcoin price officially achieved a new all-time high at $7,598, with upward momentum triggered by the entrance of institutional and retail investors from the traditional financial industry.
Specifically, a CCN report revealed that investors from two major bitcoin markets in Japan and South Korea, who are well known to be overly conservative with their investments, have started to convert to bitcoin and the cryptocurrency market.
“In Japan and South Korea, two regions in Asia that are known to have extremely conservative investors and traders, have seen an exponential increase in the demand for bitcoin from local traders. In an interview with Nathaniel Poppers of the New York Times in October, Korbit founder and CEO Tony Lyu emphasized that once people are invested in South Korea, they encourage others to join the ‘party,’” the report read.
Evidently, the demand for bitcoin from both institutional and individual investors in major regions such as the US, South Korea, Japan, and Europe has increased at a rapid rate over the past month, likely due to the maturation of the bitcoin exchange market and its increasing liquidity.
However, the price of bitcoin has increased by substantial margins in a relatively short period, as the bitcoin price surged from $4,400 to $7,598 in the past 30 days. That is, more than a $3,100 increase in the price of bitcoin within a one-month span.
Many analysts including Wall Street strategist of Fundstrat Tom Lee cautioned investors in regards to a correction that has been long overdue. The bitcoin price has increased from $4,400 to $7,598 without any minor corrections over the past four weeks, which should be considered as an unstable price trend even with the consideration of bitcoin’s exponential growth.
Historically, minor corrections have helped bitcoin stabilize its price in the short-term and regain upward momentum to initiate new rallies. With CME’s bitcoin futures exchange expected to launch by the end of this month, the bitcoin price could gear towards a new all-time high in the upcoming weeks, despite the scheduled November 16 hard fork of SegWit2x. But, several prominent experts including Litecoin creator and former Coinbase executive Charlie Lee emphasized that the hard fork could lead to a major correction of bitcoin price, if investors reallocate their funds from bitcoin to other alternative cryptocurrencies after the hard fork.
Lee noted that many investors might have migrated their funds from altcoins to bitcoin to obtain the SegWit2x tokens or B2X after the November 16 hard fork. If that is the case, Lee expects the bitcoin price to decline upon the fork.