What is going to have to come down to? Bitcoin investors may be asking themselves the question, as the cryptocurrency fell sharply on Monday.
The price of bitcoin BTCUSD,
was last down 13% to $ 35,600, according to prices quoted by CoinDesk. Losses were also seen on Sunday, when bitcoin tumbled from nearly $ 41,000 to just over $ 35,000, bouncing shortly before renewing its ancestry.
The action follows enthusiastic purchases last week that pushed bitcoin near an everyday high of $ 42,000. Despite fresh sales, the cryptocurrency has so far risen by 22% for 2021, achieving a gain of 1.8% for the S&P 500 SPX.
1.6% for the Dow Jones Industrial Average DJIA,
and 2.4% for the Nasdaq Composite COMP,
Co-cryptocurrencies also had a similar bullish start to the year, with Ethereum’s Ether ETHUSD,
with 50% higher and Litecoin LTCUSD,
Achieved 15%. But assets have also fallen by 16% and 20% respectively over the past 24 hours.
Institutional investors have helped bring about the recent march, and fans of the digital currency are convinced that bicoin gains could be sustained more than the 2017 boom, which raised prices from about $ 1,000 to $ 17,000, just to the profits by the end of 2018.
Bitcoin enthusiasts believe the asset could hold its value better this time around, following the central bank’s unbridled pressure in 2020 to help economies recover from the deadly coronavirus pandemic.
The 24-hour sales are nothing more than an overdue ‘healthy fix’, AvaTrade chief market analyst Naeem Aslam said in a note to customers on Monday.
‘Bitcoin prices are likely to support between $ 28,000 and $ 30,000. “This is not the time to panic, but to look at this opportunity from a more optimistic lens, as the bull run is not over yet, and it will probably still make its way upside down,” he said. .
However, in the ‘The Flow Show’ report released last week, Bank of America raised the question of whether the price movement of bitcoin is the ‘mother of all bubbles’.
JPMorgan strategists meanwhile recently stated the reason for valuing the digital currency at $ 146,000 if it could divert investors from the golden GC00,
as a refuge.