Bitcoin cryptocurrency saw its worst fall in two days since March 2020.
According to Arabiya Net, the cryptocurrency fell by up to 21% during Sunday and Monday to up to $ 32,389, the biggest drop in two days since the markets were affected The global pandemic hit for the first time last year which was followed by a record high of $ 42,000 until January 8th, according to Bloomberg.
Vijay Mayo, head of business development at the cryptocurrency exchange Luno in Singapore, said: It should be determined whether this is the beginning of a larger correction, but we have now seen a parabola break. , So that might be the case.
The price of Bitcoin has more than quadrupled in the past year, evoking memories of the 2017 mania that made cryptocurrencies a household name before the price crash at the same speed.
Guggenheim Investments chief investment officer Scott Minerd tweeted: "It's time to pull some money off the table." Adding in the bitcoin parabola height is not sustainable in the near term.
a parabolic rise is an upward curve that follows a steady upward equation, and as this curve is broken, a major collapse in price occurs.
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and Minerd predicted in late December that Bitcoin would eventually reach $ 400,000.
Bitcoin believers argue that this time rally is different from previous boom and bust cycles because the asset has matured with the entry of institutional investors and is increasingly seen as a legitimate hedge against weakness The dollar and inflation risks. Others worry that the rally is irrelevant and fueled by vast tracts of financial and monetary stimulus, with Bitcoin unlikely to act as an alternative to currency.
"Bitcoin is almost certain to be in another bubble and its current growth rate is unsustainable," said Convoy Investments' co-founder Howard Wang in a January 10 note. Although it may rise in the future, Bitcoin is largely a speculative asset.
In May's opinion, Bitcoin has ignored recent declines and may do so again, potentially recovering to as much as $ 44,000 before the actual correction.
Bitcoin was trading near session lows at around $ 33200 as of 7:08 am in London ....
