Bitcoin prices were plunging into corrective territory on Sunday morning, marking the strongest slide of digital assets since February, after reaching what has been a notable stretch for the crypto industry.
At the last check, bitcoin prices BTCUSD,
on Sunday morning they fell to $ 55,773.11, nearly 14% from CoinDesk’s recent peak of $ 64,829.14. The decline in the apex of cryptography meets the widely accepted definition of resource correction.
However, slides of 10% or more bitcoins are quite common because the nascent asset is considered intrinsically volatile. The last time the crypto suffered the decidedly lowest comments from Treasury Secretary Janet Yellen at a New York Times DealBook conference, she was blamed for the fall.
This time around, market participants continue to be obsessed with the specter of a crackdown by the Treasury, but they also list some other possible causes of Bitcoin correction.
Read: Long-term cryptography: what is the perspective?
Euphoric cryptography
Some industry participants point to an increase in speculative assets such as dogecoin as indications that the digital asset market is saving and vulnerable to a setback. Dogecoin prices had soared more than 7.252% year-on-year to the most recent moment.
Galaxy Digital GLXY,
CEO Michael Novogratz says that while he sees bitcoin reaching $ 100,000 by the end of 2021 and $ 500,000 by 2024, he believes the market will be marked by turmoil that he says is highlighted by the frantic appetite for assets like the dogecoin DOGEUSD
which was originally created as a parody of Bitcoin and which some consider to have limited utility.
I will see: Who’s laughing now? The epic rise of Dogecoin creating millionaires overnight
Novogratz said that the list of the cryptocurrency platform Coinbase Global COIN,
the listing has fueled “a big frenzy” around dogecoin and added that “this doesn’t end well,” speaking at a virtual event hosted by MarketWatch and Barron’s on Wednesday.
Repression? The “FUD”
Others pointed to the spread of fear, uncertainty, and doubt, or FUD, as described by the cryptographic community.
Bloomberg News reported that new speculation about a U.S. Treasury Department cryptographic crackdown related to the use of digital assets for money laundering, without specific details, was also weighing on prices.
The Coinbase hangover?
Some market participants have suggested that the expected listing of Coinbase on Nasdaq Inc. NDAQ,
it would demonstrate a new top for the crypto market and put pressure on prices after a precipitous rebound in recent days and a new bitcoin record early last week.
Take a look: Coinbase IPO: Everything You Need to Know About “Crypt Dividing Time” in Crypto
Yves Lamoureux, president of Montreal-based macroeconomic research firm Lamoureux & Co., told MarketWatch that he was afraid of the euphoria surrounding bitcoin and crypto and saw them due to a downgrade. “Can you find someone with a bearish point of view?” he asked. “A resounding no,” he replied.
Read: Coinbase’s IPO is a high score for the “Who’s Who” list of private equity investors
In any case, bitcoin prices remain high thanks to the growing attention of traditional investors. Several Wall Street players, such as Stanley Druckenmiller and Paul Tudor Jones, have accepted bitcoin. Renowned investor Bill Miller, founder of Miller Value Partners, in a letter to customers on the firm’s website, reaffirming his bullish outlook on bitcoin.
Bitcoin prices have risen by about 90% so far this year. In comparison, GC00 gold prices,
considered a rival to Bitcoin, by 2021 they were down above 6%, and more traditional securities got comparatively more pedestrian returns. The Dow Jones Industrial Average DJIA,
and the S&P 500 SPX,
have risen more than 11% in the previous year, while the Nasdaq Composite Index COMP,
has increased by 9%.