Bitcoin drops more than 20% in three days. It is now in a bear market

Bitcoin is still high Much Over the past few months, not to mention where it was only traded a few weeks ago. But the drop highlights how the dizzying rise sparked alarm bells among some on Wall Street.

“It’s scary the bitcoin price is going to rise directly,” said James Putra, vice president of product strategy for TradeStation Crypto. This withdrawal was required.

Just last week, a strategist at Bank of America said that an increase in bitcoin could beThe mother of all bubbles, Indicating that the recent spike has been larger than the other infamous craze of the past few decades: gold in the 1970s, dot-coms / tech in the late 1990s, and housing in the mid-2000s.

So the drop in the past few days is a „health correction“ that was „long overdue“, according to Naeem Aslam, chief market analyst at AvaTrade.

Bitcoin First it crossed the $ 20,000 level In mid-December and It topped $ 30,000 earlier this month – A massive rebound from the lows just above $ 4,000 as the Covid-19 outbreak reduced global financial assets last spring.

Even with the declines over the weekend and Monday, Bitcoin is still up by more than 10% in 2021 – and it has risen nearly 300% in the past 12 months.

Aslam said in a report that Bitcoin could drop as low as $ 28,000 to $ 30,000 before reaching a bottom.

Aslam said, „This is not a time for panic but to look at this opportunity from a more optimistic perspective, as the bullish trend is not over yet, and it is still likely to make its journey to the upside.“

Many bitcoin bulls remain optimistic about the future of cryptocurrencies, citing the fact that digital payment giants Field (Sk) And the PayPal (PYPL) Allow users to buy and sell it, and Several large institutional investors Paul Theodore Jones, Stanley Druckmiller, and Anthony Scaramucci are investing in it.
A senior executive in Black stone (BLK), The world’s largest asset manager, recently Bitcoin can replace gold As a major asset that investors can use to hedge against inflation and dollar weakness.

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