Does everything that goes up have to go down? Bitcoin investors may be asking this question, as the cryptocurrency fell sharply on Monday.
BTCUSD bitcoin price,
fell 13% last time to $ 35,600, according to prices quoted by CoinDesk. The losses were also observed on Sunday, when bitcoin fell from almost $ 41,000 to just over $ 35,000, returning shortly before resuming its decline.
The action follows the enthusiastic buy last week that pushed Bitcoin to near an all-time high of $ 42,000. Despite fresh sales, 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 DJIA Dow Jones Industrial average,
and 2.4% for Nasdaq Composite COMP,
Cryptocurrencies also experienced a similar start to the year, with Ether ETHUS Ethth,
50% and Litecoin LTCUSD,
earning 15%. But those assets have similarly decreased by 16% and 20% respectively in the last 24 hours.
Institutional investors have contributed to the recent rally, and digital currency fans are convinced that the gains of the bicoin could be more sustained than the 2017 increase, which saw prices rise from about $ 1,000 to $ 17,000, just to reverse those gains until at the end of 2018.
Bitcoin enthusiasts believe that the asset could hold its value better this time, after the central bank’s money was printed in 2020, designed to help economies recover from the deadly coronavirus pandemic.
The 24-hour deal is nothing more than a “healthy fix,” Naeem Aslam, chief market analyst at AvaTrade, said in a statement Monday.
“It is possible that Bitcoin prices will find support between 28,000 and 30,000 dollars. It is not the time to panic, but to analyze this opportunity from a more optimistic lens, as the bull race is not over yet and is likely to make its way to growth, “he said.
In its report “The Flow Show” published last week, however, Bank of America raised the question of whether the bitcoin price movement is the “mother of all bubbles.”
Meanwhile, JPMorgan strategists recently unveiled the digital currency to be valued at $ 146,000 if it can continue to attract investors to GC00 gold,
as a refuge-like asset.