The market is turning red today, largely thanks to news about US President Joe Biden. He wants to increase the tax on capital gains and that caused panic in both the stock markets and the crypto market. Still, several analysts remain positive.
The CEO of the on-chain analysis company CryptoQuant says in a tweet that he still thinks the market is over-leveraged, but that the fundamentals of bitcoin (BTC) still look strong:
“Do not get me wrong; I see this correction as a technical correction due to over-leveraged longs.
The fundamentals are still going strong. After the market cools in the coming weeks, $ BTC will rise. ”
Another crypto enthusiast called Dilution-proof gives two reasons why he is still bullish on bitcoin price:
Some reasons to remain optimistic about Bitcoin:
- exchange reserves are still declining, suggesting that demand remains high and supply shortage is still increasing
- The selling pressure of miners is very low and does not fill this gap
In my view, this dip is mainly a technical correction, not a fundamental ”