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Was last week's Bitcoin dip a healthy correction?

Last week Bitcoin briefly dipped to around $60,000.

By Mike Hesp
• 2 min read
Was last week's Bitcoin dip a healthy correction?

Last week Bitcoin briefly dipped to around $60,000. According to a new Bitfinex report, this latest Bitcoin dip could actually act as a stabilizer for the long term.

It's a “healthy correction” that could reduce the risk of a sudden crash in Bitcoin price over the coming days and weeks. From September 27 to October 4, the BTC price fell by nearly ten percent. Geopolitical tensions in the Middle East were cited as the primary cause. Last week, crypto prices fell following an Iranian missile strike on Israel. Many investors were worried about the potential for escalation.

Bitcoin is currently trading at around USD 62,387, representing a modest 1.9% price pullback from the previous day. BTC's broader sideways move has been ongoing for more than six months.

Bitfinex analysts suspect that convinced BTC investors are still trying to buy larger amounts of Bitcoin at lower prices. There have been several opportunities over the past months.

Additionally, the crypto market was recently supported by strong US jobs data in September. Compared with the prior month, unemployment fell by 0.1 percentage point to 4.1%.

Looking ahead, optimism for riskier assets like Bitcoin could rebound, especially if the Federal Reserve cuts rates again in November. According to CME Group surveys, a large majority of investors expect this to happen.

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