What goes up has to go down? Bitcoin investors may be wondering this, as the cryptocurrency fell sharply on Monday.
The price of bitcoin BTCUSD,
finally, it fell 13% to $ 35,600, according to prices quoted by CoinDesk. Losses were also seen on Sunday, when bitcoin fell from almost $ 41,000 to just over $ 35,000, jumping briefly before resuming its fall.
The stock follows an enthusiastic buyout last week, which pushed bitcoin close to an all-time high of $ 42,000. Despite the new sales, the cryptocurrency is still up 22% so far for 2021, beating a 1.8% gain for the S&P 500 SPX handily,
1.6% for the Dow Jones Industrial Average DJIA,
and 2.4% for the Nasdaq Composite COMP,
Other cryptocurrencies also had a similarly optimistic start to the year, with Ethereum’s Ether ETHUSD,
up to 50% and Litecoin LTCUSD,
earning 15%. But these assets also fell by 16% and 20%, respectively, in the past 24 hours.
Institutional investors have helped to boost the recent rally, and fans of the digital currency are convinced that the gains from Beakin may be more sustained than the 2017 increase, which saw prices rise from about $ 1,000 to $ US 17,000, just to reverse those gains by the end of 2018.
Bitcoin enthusiasts believe the asset could maintain its best value this time, after the central bank’s unbridled printing of money in 2020 with the aim of helping economies recover from the deadly coronavirus pandemic.
The 24-hour sales session is nothing more than a delayed “healthy fix,” AvaTrade’s chief market analyst Naeem Aslam told clients in a note on Monday.
“Bitcoin prices are likely to find 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 is likely to make its journey on the positive side, ”he said.
However, in its report “The Flow Show” released last week, Bank of America raised the question of whether the bitcoin price movement represents the “mother of all bubbles”.
JPMorgan strategists, for their part, recently exposed the case that the digital currency is valued at $ 146,000 if it manages to keep investors away from GC00 gold,
like a paradise-like resource.