“It’s scary when the price of bitcoin just goes straight up,” said James Putra, vice president of product strategy for TradeStation Crypto. “This disadvantage was necessary.”
Just last week, a Bank of America strategist said that bitcoin’s boom could be the ‘mother of all bubbles’, pointing out that the recent rise is bigger than other notorious ways of the past few decades: gold in the 70s, dot-coms / tech in the late 1990s and housing in the mid 2000s.
The decline over the past few days is therefore a ‘healthy correction’ that would have been ‘long ago’, according to Naeem Aslam, chief market analyst at AvaTrade.
Bitcoin first surpassed mid-$ 20,000 in mid-December and rose above $ 30,000 earlier this month – a huge rebound from a low of just over $ 4,000 as the Covid-19 outbreak last year’s global financial assets have declined.
Even with the decline over the weekend and Monday, bitcoin is still rising more than 10% in 2021 – and it has risen by about 300% over the past twelve months.
Aslam said in a report that bitcoin may drop to the $ 28,000 to $ 30,000 level before it reaches the bottom.
“This is not the time to panic, but to view this opportunity from a more optimistic lens,” Aslam said, “as the bullrun is not over yet, and it’s probably still the journey to the upside. will make. “
Many bitcoin bulls remain optimistic about the future of cryptocurrencies, citing the fact that digital payment giants Square (SQ) and PayPal (PYPL) let users buy and sell it, and many top institutional investors, including Paul Tudor Jones, Stanley Druckenmiller and Anthony Scaramucci, invest in it.
A top manager at BlackRock (BLK), the world’s largest asset manager, recently said bitcoin could replace gold as the most important asset investors can use to protect against inflation and a weaker dollar.
