After rapidly rising $ 42,000, Bitcoin has fallen nearly 22% in the past 24 hours This afternoon I traded over 30,000 USD. This is the biggest drop in the most popular cryptocurrency since March of last year, at the start of the epidemic, and is worrying investors and savers about The bubble will eventually burst. In any case, analysts recommend waiting to see if the downtrend continues or if the price rises again, as it usually does.
The vast majority of 4,026 cryptocurrencies suffered sharp declines today, in line with Bitcoin. For example, Ethereum, the second most sought-after order in the world, lost 28% of its value in just one day, and Litecoin lost 31%. a lot Others fell more than 60%. Bitcoin volatility is common. After quadrupling its price in 2020, its decline today appears to be similar to what happened in December 2017, when it rose within a few days to touch $ 20,000 for the first time, losing 85% of its value the following year.
“Whether this is the start of a major correction remains to be determined, but we now see that the upside can be broken,” Vijay Ayar, head of business development at Singapore-based Luno Exchange, told Bloomberg. The same network tweeted a recent tweet from Scott Minerd, chief investment officer at Guggenheim Investments:Time to get some money off the table. Meteoric Rise of Bitcoin Not sustainable in the short termBecause at the end of December, Minerd himself had predicted that Bitcoin might eventually reach $ 400,000.
Create cryptocurrencies Disagreement between fans and critics. With more enthusiasm than the arguments, its adherents assert that it is a disrupted market, devoid of regulations from governments, central banks and regulators and that its price is determined by the free interaction of supply and demand. It is a new technological revolution, incomprehensible to the dominant conservatives in the traditional financial world. Its critics say, with equal force, that it is a speculative bubble, that this bitcoin has no intrinsic value and is based on a Ponzi scheme: like a hierarchical scam. They say, “Bitcoin does not produce anything, and whoever buys it is only waiting for its price to rise.”
High prices attract new investorsMost of them are speculators looking for quick and easy riches. But it is also attracting the attention of regulators in many countries. The Financial Supervisory Authority of England issued a strong warning on Monday to potential buyers: I have clearly told them that ‘Consumers who invest in these types of products should be prepared to lose all of their money“.
Something similar happened in Spain. The Financial Conduct Authority (FCA) in that country has warned companies about this Offers high yields for cryptocurrencies Without noting, “this generally means carrying a very high risk of investor money.” In that sense, the FCA recalled it, as it happens With all speculative investments High risk, Consumers need to make sure they understand what they are investing inThe risks associated with investment and applicable regulatory protection. They noted that in the case of crypto assets, “it is unlikely that consumers will be able to access the Investor Ombudsman Service or the Financial Services Compensation Fund if something goes wrong.”