Bitcoin has been up a lot over the last few months, not to mention where it traded a few weeks ago. But the drop shows that some people on Wall Street have been alarmed by a spectacular increase.
James Putra, vice president of product strategy for TradeStation Cryptosaid that it was terrifying when the price of bitcoin suddenly goes directly up.
Just last week, a Bank of America strategist said Bitcoin’s boom could be ‘the mom of all bulbs’ and pointed out that the latest spike is bigger than the other infamous mania that has taken place in the last few decades.
According to AvaTrade’s Chief Market Analyst, Naeem Aslam, the decline in the past few days is a “healthy correction.”
The first thing Bitcoin had been to over $20,000 in mid-December was over $30,000 earlier this month – a massive recovery from the low of just over $4,000 when last spring the Covid-19 outbreak sent down global financial assets. Bitcoin nevertheless rose over 10% in 2021, even with declines over the weekend and Monday, and rose by about 300% in the past 12 months.
A study by Aslam, Bitcoin could fall to the level of $28,000 to $30,000 before it gets down. Aslam said that was not the time to panic but to look at this chance from a more optimistic view. The bull run was not over yet, and it was still likely to make its journey to the upside.
Plenty of the bitcoin bulls are also positive about the future of cryptocurrencies, with Square (SQ) and PayPal (PYPL) digital payment giants allowing consumers to purchase and market them, and many big institutions such as the Paul Tudor Jones, Stanley Druckenmiller, and Anthony Scaramucci invest in it.
The world’s leading asset manager, BlackRock (BLK), said that Bitcoin could replace gold as the key asset that can be used by buyers to hedge inflation and a dollar.