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In the space of 24 hours, Bitcoin exceeded $40,000 before recording a historic drop. But for the experts, the decline was predictable and even healthy.
Not all Bitcoin records are the same. For example, the cryptocurrencies recently set a new ATH above $40,000. However, another, less prestigious record followed quickly.
On January 11, Bitcoin recorded its most significant drop to date, dropping as low as $32,000 per token. Had the speculative bubble, the “mother of all bubbles” in the opinion of Bank of America, just burst?
Mark Cuban, a renowned crypto-skeptic, did not fail to reach this conclusion. The billionaire draws a parallel between cryptocurrencies and the bursting of the Internet bubble in the early 2000s.
However, it should be remembered that many of the digital players affected by the bubble are now global giants. The future of cryptocurrencies therefore still has great prospects.
However, in the short term, a sharp fall cannot be ruled out. This is even a hypothesis that should not be overlooked by Celsius CEO Alex Mashinsky. A return of Bitcoin at 16,000 dollars is not impossible, he warns Cointelegraph.
More generally, the expert reminds us that price corrections are healthy and normal, and do not exclude subsequent increases. “I have predicted that Bitcoin and many Altcoins will reach new heights in 2021 and beyond,” Mashinsky said.
“Nevertheless, we will see several corrections, such as what is happening today, that will allow sophisticated investors to accumulate these assets at a discount,” he adds. This was also explained by the deVere Group boss to justify the sale of 50% of his Bitcoin.
For crypto analysts, the trend remains positive, despite a dizzying drop in the value of cryptocurrencies in just a few hours. It should also be remembered that in the space of a month, the price of Bitcoin jumped from 17,500 dollars to more than 40,000.
“Bitcoin’s meteoric rise is unsustainable in the short term. Vulnerable to a setback,” warned Guggenheim Partners investment director Scott Minerd at the first signs of a decline.
“A worrisome sign was not that the price of Bitcoin was rising,” but the speed at which it was rising, also tempers an ExoAlpha expert. David Lifchitz sees this as “a healthy correction to purge the excessive growth of the last 10 days. As a result, Bitcoin can now aim for $50,000 or more.