Bitcoin’s white journey took another turn on Monday, being the worst two-day fall in the digital currency since March raised concerns that the polarizing cryptocurrency boom could run out of steam.
Bitcoin, the largest cryptocurrency, fell to 21% on Sundays and Mondays to $ 32,389. This is the largest two-day slide since global markets were stolen by the pandemic last year and follows a record high of nearly $ 42,000 on January 8th.
“It remains to be seen whether this is the beginning of a major correction, but now we have seen this parable break, so it could just be,” said Vijay Ayyar, head of business development at Singapore’s Luno crypto exchange.
The price of Bitcoin has more than quadrupled in the last year, evoking memories of the 2017 craze that made cryptocurrencies a household name before prices plummeted just as quickly.
“It’s time to get some money off the table,” Scott Minerd, Guggenheim Investments’ chief investment officer, said in a tweet from his Twitter-verified account. “Bitcoin’s parabolic growth is unsustainable in the short term.”
Minerd in late December predicted that Bitcoin could finally arrive $ 400,000.
True Bitcoin believers argue that this time’s rally is different from past boom-bust cycles, as the asset matured with the entry of institutional investors and is increasingly seen as a legitimate hedge against the dollar’s weakness and inflation risk. . Others worry that the rally is unrelated to reason and is fueled by a wide range of fiscal and monetary incentives, with Bitcoin unlikely to ever serve as a viable monetary alternative.
“Bitcoin is almost certainly in another bubble, and its current growth rate is not sustainable,” Howard Wang, co-founder of Convoy Investments LLC, said in a note on Jan. 10. “Although it may mature in the future, Bitcoin, as it exists, is largely a speculative asset.”
Read: How does Bitcoin compare to the great bubbles of history
Bitcoin has given up on recent declines and could do so again, recovering up to $ 44,000 “before the actual correction,” said Luno’s Ayuno.
Bitcoin held near the session lows at around $ 33,200 starting at 7:08 in London. Rival digital assets are also declining, with the second largest Ether currency collapsing by up to 21%.
Read: Does Bitcoin Boom mean “better gold” or bigger bubbles? QuickTake
– With the assistance of Mark Cranfield
(Updates with additional details and Minerd comment.)