After hitting its latest all-time high above $ 40,000, Bitcoin crashed after observing a seemingly stronger US dollar.
Bitcoin faints against the US dollar
Over the past 24 hours, the leading crypto has declined 8.27%, according to data from CoinMarketCap. However, the drop was even worse given that at one point Bitcoin hit a low of $ 32,000.
This is how, in the last 24 hours, the crypto lost approximately $ 9,000 in a matter of hours, once again demonstrating its ability to be volatile.
However, the consequences were not exclusive to Bitcoin. The crypto market lost approximately $ 140 billion in capitalization.
We must bear in mind that the fall of the leading crypto occurs in a context marked by political uncertainty as investors are attentive to a possible impeachment of President Donald Trump.
Also, according to Business Insider, Rabobank strategists explained that “Stronger dollar and higher bond yields have also caused Bitcoin and gold prices to drop this morning.”
Furthermore, according to Scott Minerd, global chief investment officer at investment giant Guggenheim Partners, “Bitcoin’s parabolic surge is unsustainable in the short term. Vulnerable to setbacks.
However, crypto investors really shouldn’t be surprised. Spontaneous price drops are very common in the crypto market, especially for Bitcoin.
Right now, Bitcoin made a slight recovery from its low to settle at $ 35,000, according to CoinMarketCap.
What does the future of the leading cryptocurrency look like now?
Today Alex Mashinsky, CEO of Celsius, shared with CoinTelegraph the possibility that Bitcoin could even fall as low as $ 16,000 based on the fact that sooner or later the bears will gain the necessary strength.
When could it happen? Mashinsky established that it could occur before the end of the first quarter of the year.
Crypto Bakkt will be listed on the stock exchange
Bitcoin’s crypto future may remain uncertain, but Bakkt has already established that 2021 will be its year through an exchange listing.
As previously reported, Bakkt will merge with VPC Impact Acquisition Holdings in an agreement that will result in a combined company called Bakkt Holdings, which will be listed on the New York Stock Exchange.
In addition, the press release revealed that the company will be valued at USD 2.1 billion.
Is Bitcoin the Amazon of the 2000s or is it a bubble?
In the crypto market there are always many opinions after Bitcoin makes an impressive movement marked by volatility. In this case, after collapsing, there are messages of encouragement as well as others that seem to say “I told you so!”
On the one hand, Anthony Scaramucci, founder of SkyBridge Capital, took the opportunity to compare the leading crypto to Amazon’s early days.
However, he clarified that, contrary to what many think, it is not too late to invest in crypto, but quite the opposite. Therefore, he explained that it is a growing market.
Meanwhile, Mark Cuban assures that the crypto market is “exactly” like the Dotcom bubble of the late 1990s and early 2000s.
In a few lines …
- Patrick Hughes has put his two bars up for sale for Bitcoin or Ethereum worth approximately $ 1 million.
- Elon musk assured that it will no longer reject a payment made in the leading crypto.