What goes up must come down? Bitcoin investors may be asking themselves that question as the cryptocurrency fell sharply on Monday.
The price of bitcoin BTCUSD,
was last dropped 13% to $ 35,600, according to CoinDesk pricing. Losses were also seen on Sunday when bitcoin plummeted from nearly $ 41,000 to just over $ 35,000, bouncing briefly before resuming its decline.
The promotion follows enthusiastic purchases last week that pushed bitcoin to a record high of $ 42,000. Despite new sales, the cryptocurrency is up 22% so far for 2021, conveniently a 1.8% gain for the S&P 500 SPX,
1.6% for the Dow Jones Industrial Average DJIA,
and 2.4% for the Nasdaq Composite COMP,
Fellow cryptocurrencies also got a similar bullish start to the year, with Ethereum’s Ether ETHUSD,
50% higher and Litecoin LTCUSD,
15%. But those assets are similarly down 16% and 20% respectively in the last 24 hours.
Institutional investors have helped drive the recent rally, and fans of the digital currency are convinced that Bicoin’s earnings could be more sustainable than 2017’s gains, when prices rose from about $ 1,000 to $ 17,000 to justify that profit by the end of 2018.
Bitcoin enthusiasts believe the asset could better hold its value this time around, following rampant money at the central bank in 2020 to help economies recover from the deadly coronavirus pandemic.
The 24-hour sales period is nothing more than an overdue “healthy correction,” Naeem Aslam, chief market analyst at AvaTrade, told customers in a note on Monday.
Bitcoin prices are likely to be between $ 28K and $ 30K. Now is not the time to panic, but to look at this opportunity with a more optimistic lens, as the bull run is not over yet, and it is still likely that he will make his journey to the top, ”he said .
In its “The Flow Show” report released last week, Bank of America posed the question of whether bitcoin’s price movement represents the “mother of all bubbles”.
JPMorgan strategists, meanwhile, have recently laid out the arguments for valuing the digital currency at $ 146,000 if it can continue to pull investors away from gold GC00,
as a harbor-like possession.