Bitcoin’s shorter-term price woes are likely not over yet, analysts say, with one predicting a decline to $26,000.
The cryptocurrency fell by 13% on Thursday in a spot market sell-off, hitting a low of $28,845 earlier on Friday, the lowest level since Jan. 4. In the hours since, the cryptocurrency has regained some poise to trade back above $31,000.
“I’m not sure the low of $28,000 seen early Friday is the bottom,” Ki-Young Ju, CEO of blockchain analytics firm CryptoQuant, told CoinDesk. He highlighted a negative “Coinbase premium” as evidence of weak dip demand from large investors.
CryptoQuant’s Coinbase premium indicator measures the spread between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair, which includes the stablecoin tether. A positive spread implies strong institutional inflows, as Coinbase is considered synonymous with high net-worth individuals and institutional investors.
While prices have recovered to $31,000,