If you’ve observed any of the crypto exchanges within the last 48 hours, you might have been a bit shocked. For the second straight day now, Bitcoin has been dealing with more than a 10% decline.
Even though this may seem like a negligible amount, it equals out to more than 100 billion being taken from the overall crypto market. At the time of writing, Bitcoin (BTC) is sitting at just under USD 32,000 for the first time since January 11th.
This comes after BTC hit an all-time high of just under USD 42,000.
So, should you be worried? It depends on who you ask. Numerous individuals have argued that a correction like this was not only expected but needed. If we look at previous data on the bull run of 2017, more than five significant corrections were involved that were 30% or more. So, this was just normal then, correct?
Another notable aspect influencing the price drop in crypto is Janet Yellen, the U.S. Treasury Secretary, who made statements about cryptocurrencies being used for “Illicit financing.”
Nevertheless, news reports showed that cryptocurrencies‘ criminal activity had decreased to 0.34% of the global world transaction volume ($10.0 billion) days before these accounts. This is a meaningful improvement from 2019s numbers of 2.1% ($21 billion).
Notwithstanding these statements and corrections, institutional investor demand is at an all-time high for Bitcoin and doesn’t look like it’s stopping soon.
This has not replaced many bears who argue that Bitcoin is just a bubble waiting to burst. Whatever your view may be, it’s clear to see that cryptocurrency is becoming more and more involved with the mainstream media and news again.
Whatever happens, more updates will be added as made available.
No Comment