Bitcoin Price Sees Largest Daily Loss in 10 Months
Bitcoin bubble burst and market crash as people sell their currency and get out of the market.
Bitcoin ended Thursday down 13%, posting its largest daily drop since the market crash of March 2020.
The leading cryptocurrency’s drop is “probably just a dip,” according to Techemy Capital trader Josh Olszewicz, who is not expecting a prolonged correction.
Bloomberg analyst Mike McGlone agreed, telling CoinDesk he could see bitcoin (BTC, -16.23%) “probing for support and resistance within a mostly $30,000 to $40,000 range for awhile until embarking on the next leg of the stair-step rally.”
But Guggenheim’s CIO Scott Minerd thinks bitcoin maybe have topped temporarily, saying that a retrace to $20,000 is possible.
Significant selling over the past week on U.S.-based exchange Coinbase signals profit-taking by investors, per CoinDesk’s prior reporting, after bitcoin nearly tapped $42,000 earlier in January.
Leading alternate cryptocurrencies (altcoins) like ether (ETH, -21.64%) and chainlink (LINK, -17.93%) also recorded double-digit percentage losses.
Thursday’s drop helped erase most of bitcoin’s yearly gains, with the cryptocurrency now up only 6% in 2021.
