Still, Lee thinks the correction is temporary and the price rise will continue because “the macro situation hasn’t changed”.
Some major factors have been supporting bitcoin’s major rally this year including:
Longer term, proponents of the digital currency are excited about the prospect of the broader sector which could potentially rival fiat currencies.
Investors appear to currently be positioning for another price rise in bitcoin. Total active margin trading long positions have risen from 18,576.54 bitcoin on Thursday, to 21,168.90 bitcoin on Monday, according to data from CryptoCompare. Margin trading involves borrowing funds in order to buy or sell bitcoin. The rise in long positions shows that traders are expecting a rise in the cryptocurrency.
There is still a lot of bullishness in the market with some calls for the price to reach as high as $6,000 this year.
“There is a lot of fresh liquidity flowing into bitcoin, thanks to a surge in interest among investors in Asia, notably Japan and Korea, coupled with a resolution to the scaling debate. I would not be surprised to see the bitcoin price doubling again to around $6000 by the end of the year,” Aurelien Menant, CEO of Gatecoin, a regulated cryptocurrency exchange, told CNBC in a recent interview.