Bitcoin prices sank in the right area on Sunday morning, which was the sharpest slide for the digital asset since February, coming on the heels of what was a remarkable piece for the crypto industry.
On the last check, bitcoin prices BTCUSD,
The late-morning Sunday was at $ 55,773.11 almost 14% lower than a recent high on CoinDesk $ 64,829.14. The decrease from the top of the crypto meets the generally accepted definition of a correction in an asset.
However, chips of 10% or better bitcoin are fairly common because the emerging asset is considered inherently volatile. The last time the crypto utterance decidedly lower Treasury Secretary Janet Yellen’s remarks during a New York Times DealBook conference blamed the slump.
This time, market participants continue to be haunted by the ghost of the treasury, but also name a few other possible causes for the correction of bitcoin.
Read: Crypto for the long term: what is the outlook?
Crypto-euphoria
Some industry participants point to an increase in speculative assets, such as dogecoin, as an indication that the digital asset market is degenerating and vulnerable to a downturn. The price of Dogecoin has risen above 7,252% at their recent high.
Galaxy Digital GLXY,
CEO Michael Novogratz says although he sees bitcoin reaching $ 100,000 by the end of 2021 and $ 500,000 by 2024, he believes the market will be characterized by turmoil which he says is fueled by an insane appetite for assets like dogecoin DOGEUSD,
which was originally created as a parody of bitcoin and is considered by some to be of limited use.
See: Who’s laughing now? Dogecoin’s epic boom that creates millionaires overnight
Novogratz said that the list of the crypto-platform Coinbase Global COIN,
The listing sparked ‘a lot of madness’ around dogecoin, adding that ‘it never ends well’, at a virtual event hosted by MarketWatch and Barron on Wednesday.
Collapse? Or ‘FUD’
Others have pointed to the spread of fear, uncertainty and doubt, or FUD, as the crypto community describes it.
Bloomberg News reported that further speculation about a crypto-suppression by the U.S. Treasury Department, related to the use of digital assets for money laundering, without specific details, also weighs the price.
Coinbase hangover?
Some market participants have suggested that the much anticipated Coinbase listing on Nasdaq Inc. NDAQ,
would be a new top for the crypto market and put prices under pressure after a huge rally in recent days and a new record for bitcoin early last week.
Sign out: Coinbase IPO: Everything you need to know about the ‘watershed moment’ in crypto
Yves Lamoureux, president of the macroeconomic research firm Lamoureux & Co. in Montreal, told MarketWatch that he fears the euphoria around bitcoin and crypto is the result of a retrenchment. “Can you find someone out there with a clumsy point of view?” he asked. “A resounding no,” he replied.
Read: Coinbase IPO is a big score for the ‘Who’s Who’ list of private equity investors on the crypto platform
In any case, bitcoin prices continue to rise due to the increasing attention of traditional investors. Several notable Wall Street players, including Stanley Druckenmiller and Paul Tudor Jones, have seized bitcoin. Well-known investor Bill Miller, founder of Miller Value Partners, in a letter to clients on the firm’s website, confirming its bullish outlook on bitcoin.
Bitcoin prices have risen by about 90% so far this year. For comparison, GC00 gold prices,
considered a competitor of bitcoin, was so far in 2021 with more than 6%, and more traditional securities have seen relatively more returns for pedestrians. The Dow Jones Industrial Average DJIA,
and the S&P 500 SPX,
has risen more than 11% so far this year, while the Nasdaq Composite Index COMP,
is 9% higher.