Bitcoin Eases After All-Time High, Market Considers It a Temporary Correction with Upward Potential

Bitcoin (BTC) has experienced a slight dip following its record high in U.S. dollar terms. Market participants perceive this as a brief correction, with analysts optimistic about Bitcoin’s long-term growth, buoyed by sustained institutional interest.

As of 8:10 a.m. KST on October 28, Bitcoin was priced at ₩151.55 million on South Korea’s Upbit exchange, reflecting a 0.42% drop from the previous day. Similarly, Bitcoin fell by 0.38% to $109,070 on Binance. Meanwhile, the CoinDesk 20 Index, which tracks 20 leading cryptocurrencies, increased by 1.36%, with notable gains from XRP (XRP) and Solana (SOL), up by 0.63% and 1.37% respectively. Ethereum (ETH) led the market with a 4.12% rise.

Bitcoin Liquidations Reflect Temporary Market Adjustment

CoinGlass data reveals that Bitcoin saw $87.99 million (₩121 billion) in liquidations over the past 24 hours, with 66% of these being long positions. Total liquidations in the broader digital asset market totaled around $283.52 million (₩390.1 billion). Despite this, Bitcoin remains stable near $110,000, bolstered by steady demand for spot Exchange-Traded Funds (ETFs).

QCP, a digital asset research firm from Singapore, noted, "Bitcoin is trading in the $107,000–$110,000 range, supported by ongoing demand for spot ETFs." This sentiment is echoed by continuous institutional purchases.

Institutional Demand Prop Up Bitcoin’s Price

BlackRock, the world’s largest asset manager, recently added approximately 22,419 Bitcoin to its holdings, bringing its total to over 621,000 Bitcoin. This accounts for about 3% of Bitcoin’s total supply, surpassing major holders like Binance and MicroStrategy.

As institutional buying intensifies, asset management firm VanEck proposed that the U.S. government consider Bitcoin as a strategic reserve asset. VanEck, managing $120 billion in assets, is actively involved in digital asset investments.

This proposal aligns with market trends like increased institutional investments, growth in the ETF market, and Bitcoin’s rising scarcity. Industry experts note that the inflow of institutional capital via Bitcoin ETFs reduces circulating supply, potentially enhancing Bitcoin’s value over the medium to long term.

Hunter Horsley, CEO of Bitwise, highlighted, “Allocating just 1% of portfolios by asset managers to Bitcoin could inject substantial capital into the market,” underlining a positive outlook for Bitcoin’s future.

Experts Highlight Long-Term Adoption and Growth Potential

Adam Back, CEO of Blockstream, remarked that as more institutional players and governments expand their Bitcoin exposure, the emphasis should move from market timing to the technology’s long-term adoption curve. “Despite significant volatility, Bitcoin’s future lies in its increased adoption,” he stated.

Back added, “Bitcoin has historically shown repeated price surges and corrections, yet the overall trend is upward. Selling in the short term to capitalize on minor dips is statistically less advantageous given Bitcoin’s strong long-term growth trajectory.”

Investor Sentiment Remains Optimistic

As of October 28, the Alternative.me Fear & Greed Index, which measures investor sentiment in the digital asset market, stood at 74 (Greed), up slightly from 73 the previous day. The index ranges from 0 to 100, with lower values indicating strong selling tendencies and higher values signaling a greater appetite for buying.

Despite the present pullback, expert analyses and data affirm Bitcoin’s solid long-term fundamentals. Institutional demand, a declining circulating supply, and growing adoption trends forecast a bright future for Bitcoin, reinforcing its place as a vital addition to long-term investment portfolios.