- Tram Ho
Bitcoin has plummeted in recent trading, showing a correction has officially taken place (the market is considered an adjustment when the asset’s value falls by at least 10% in the short term)
Most recently, the Bitcoin price listed on CoinDesk fell 2.4% to $ 16,714, or 14% more than the 52-week high ($ 19,495) of less than 24 hours before the Thanksgiving crash. in U.S.A.
The Bitcoin digital currency has traditionally been volatile, and has been very volatile since its inception.
But if Bitcoin market watchers are still looking for a reason for its decline, then new market entrants assume the reason for the decline is due to two main factors:
Prediction from Mr. Armstrong’s information
A series of messages from Coinbase CEO Armstrong via Twitter is believed to be one of the causes of the decline not only with Bitcoin but also the crypto market as a whole.
On Nov. 24, Mr Armstrong wrote on Twitter implying that the Treasury Department is working to push regulations to tighten some areas before the Trump administration ends his term.
The cryptocurrency sector – still in its infancy – still faces many ‘threats’ of stricter regulations. But Armstrong’s words are enough to create a bearish trend in Bitcoin’s movement cycle – the coin has risen over 130% so far.
The regression after the rising wave
Charles Hayter, the founder of CryptoCompare, in an email comment to MarketWatch on November 27 that Bitcoin’s decline is not surprising because it has just gone through a price spike too fast and has reached a high. most since December 2017.
Bitcoin’s price appreciation is too much as the DowJones industrial average is up 5% year-to-date, the S&P 500 is up more than 12% and the Nasdaq Composite is up 35%. Even the gold price has only risen 19% this year and is also reversing to decline when news of vaccine efficacy appears.
“A handful of Bitcoin investors who bought this money when it was at $ 10,000 have made a big profit after the last bull run, and some who lost their money three years ago feel glad to have liquidated it. Bitcoin holdings, “said Mr. Hayter.
Bitcoin investors have been very accustomed to this type of investment’s sudden reversal. Since 2017, Bitcoin has had 24 waves of decline.
Although Bitcoin is in a downturn, many people still hope in the future it will rise even more for the following reasons:
Libra money is about to be born
Facebook’s digital currency network, Libra, could launch as early as January. As such, Libra will represent a major achievement in history as a whole, even if critics say that it is not real. representation of the traditional cryptocurrency market.
The advent of Libra could be a turning point for digital asset proponents at a time when cryptocurrencies are increasingly attractive and seen by many as mainstream.
Support for Bitcoin increased
Last month, PayPal Holdings said it would allow customers to buy cryptocurrencies through their accounts and use cryptocurrencies to pay sellers, which also shows the legality of the fledgling asset class. this.
Major investors, including the well-known hedge fund Paul Tudor Jones, have become supporters of the property, as demonstrated in a recent CNBC interview as Bitcoin is rising rapidly.
In a discussion held by CNBC, BlackRock’s chief investment officer for fixed income, Rick Reider, argued that Bitcoin will last and that the coin is likely to grow. He also added that many veteran investors are very fond of Bitcoin and that the popularization of crypto payments that is becoming a reality are also very positive factors for the development of the coin. Billionaire investor Mike Novogratz, who discussed with Mr. Reider, also said that Bitcoin is already in the institutional portfolio, and that 2021 will be a good enough year or even better than 2020. for Bitcoin.
That said, institutional investors are increasingly interested in considering Bitcoin as a legal alternative to other assets.
Even so, those who oppose Bitcoin have always warned their rivals that it is an asset that can drop in value to zero at any time, and the digital currency is always hidden with “conspiracies” and potential risk.
Reference: MSN, Marketwatch
Source : Genk