Bitcoin dropped sharply yesterday, trading below $ 30,000 for the first time since January 4. But today, it climbed up a bit, reaching a price of $ 31,421.
According to CoinDesk, the cryptocurrency fell at its lowest level yesterday, after rising a bit rapidly in early January. In particular, it dropped to $ 28 800 for 1 virtual coin.
Fortunately, today, price has slightly adjusted as compared to yesterday's indicators, trading near $ 31,721 in CoinMarketCap, which is 7.80% lower than its previous value. Meanwhile, in Binance, it traded at $ 31,530, which is 9.2% lower than its earlier price.
Most likely, this drop is directly related to the active profit taking of large investors. For example, major US indices such as DJIA, NASDAQ and S&P 500 have shown positive dynamics by the end of yesterday's trading due to the recent inauguration of the new US president. Stock market participants have pinned their hopes that the new administration will implement large-scale measures to stimulate the US economy.
At the same time, a couple of days ago, Janet Yellen, who was nominated by the Joe Biden for the post of Treasury Secretary, spoke about cryptocurrencies, calling them a reason for "special concern". According to Yellen, they are mainly used for illegal financing, so she suggests exploring ways to restrict the use of virtual coins to prevent money laundering.
As a result, Michael van de Poppe of the Amsterdam Stock Exchange said this decline is only the beginning. In his opinion, in the coming weeks, bitcoin will continue to declining, collapsing by another 30-40%, that is, up to $ 24,000- $ 26,000.
Scott Minerd, chief investment officer at Guggenheim, also believes Bitcoin will drop in value, in particular, to $ 20,000. He also does not see any renewed all-time highs in the coming year.
As for the head of CryptoQuant, Ki Yang Joo, he is confident that Bitcoin will further drop in value, explaining that large investors are starting to transfer their cryptocurrencies to exchanges, most likely for the purpose of selling. If buyers do not focus on this, the market will tend to decline in the short term. At the same time, Ki Yang Joo expressed confidence that this year. Bitcoin could still soar to $ 100,000.
Prior to this sharp decline, analyst Willie Wu said $ 100,000 was a very low value for Bitcoin, stating that the cryptocurrency will definitely cost at least $ 200,000 this year.
In any case, the recent drop in bitcoin has cost the entire cryptocurrency market more than $ 100 billion.