What should go up? Bitcoin investors may be asking this question, as the cryptocurrency fell sharply on Monday.
The price of bitcoin BTCUSD,
it was down 13% to $ 35,600, according to prices quoted by CoinDesk. The losses were also seen on Sunday, when Bitcoin fell from nearly $ 41,000 to just over $ 35,000, bouncing briefly before resuming its decline.
The stock follows the buying enthusiastically last week that pushed Bitcoin to an all-time high of $ 42,000. Despite the new sale, the cryptocurrency is still up 22% so far for 2021, easily surpassing a 1.8% gain for the S&P 500 SPX,
1.6% for the DIA Jones Industrial Average DJIA,
and 2.4% for the Nasdaq Composite COMP,
Cryptocurrency companies have also seen a similar start to the year, with Ethereum’s Ethher ETHUSD,
50% more and Litecoin LTCUSD,
gaining 15%. But these assets have also fallen by 16% and 20%, respectively, in the last 24 hours.
Institutional investors have been helping drive the recent rally and digital currency fans are convinced bicoin gains could be more sustained than the 2017 rise, which saw prices rise from about $ 1,000 to $ 17,000 , only to reverse these gains at the end of 2018.
Bitcoin enthusiasts believe the asset could better hold its value this time around, after the huge printing of money from central banks in 2020 aimed at helping economies recover from the deadly coronavirus pandemic.
24-hour sales are nothing more than an outdated “healthy fix,” Naeem Aslam, chief market analyst at AvaTrade, told customers in a note Monday.
“Bitcoin prices are likely to be supported by between $ 28,000 and $ 30,000. It is not the time to panic, but to look at this opportunity from a more optimistic point of view, as the bull race is not over yet and is likely to make its way upwards, ”he said.
In its “The Flow Show” report released last week, Bank of America raised the question of whether the Bitcoin price movement represents the “mother of all bubbles”.
Meanwhile, JPMorgan strategists recently exposed the case that the digital currency would be valued at $ 146,000 if it can continue to push investors away from the golden GC00,
as a refuge-like asset.