• Thu. Feb 22nd, 2024

Bitcoin (BTC) Drops $6K In 3 Days Only; More Pain to Come?

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Dec 30, 2021

Most financial experts believe Bitcoin will likely see volatility and its prices consolidated at the coin’s current value areas for some time.

Bitcoin (BTC) has seen free falls over the last few days. Meanwhile, Thursday sessions had the largest crypto-assets testing the levels of $46,000. The turmoil in the cryptocurrency marketplace continues during end-year holidays. Moreover, most countries are ending their financial year. Bitcoin has dropped around 11% or $6,000 in three days.

Bitcoin recorded its ATH at $68,791 on 10 November, and the digital coin has lost over 33% from its record peak. Cryptocurrency analysts trust that the top crypto is bound for corrections and consolidations following a long rally.

OKEx CEO Jay Hao commented on the current crypto market situation, stating that year-end BTC volatility was possible amid retail and institutional sell-off globally. The expert explained that the United Stated financial year concludes before New Year, seeing massive rebalancing and selling related to hedge fund tax, translating to temporary sell momentum on assets price.

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Meanwhile, whale addresses holding more than 100K BTCs have dropped since 2020. Analysts urge that widespread buzz about legitimacy and regulation also hurts crypto market sentiment. Furthermore, inadequate clarity on use cases and fundamentals also impacts the new asset class.

Belfrics Group CEO Praveen Kumar stated that most new investors are unaware of cryptocurrency capabilities and the underlying technology. Kumar believes the regulatory and legislative framework on cryptocurrency assets by the capital market and central banks is healthy for the marketplace. That is because investors will lose skepticism over digital currencies.

Meanwhile, Bitcoin enthusiasts remain bullish for the assets, eyeing new ATHs in 2022. Most experts see Bitcoin retaining volatility and consolidating at its current price areas for some time. OKEx founder stated that BTC at the $45,000 – $50,000 range is lucrative since it leads to positive sentiment by investors.

Nevertheless, some reports suggest that the leading crypto will test $40,000 next week. However, most analysts ruled out this theory. For instance, BitBNS CEO Gaurav Dahake predicts that BTC can hit $42,000 but hitting $40,000 is unlikely.

Stay tuned for the latest developments in the crypto world.

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