Bitcoin surged above $ 58,000 on Sunday, hitting a new high, before dropping to around $ 48,000 on Tuesday. What are the analysts saying?
BTC down after reaching new ATH
Bitcoin surpassed $ 50,000 for the first time on Tuesday. It already cost over $ 58,000 on Sunday. As CoinMarketCap data shows, ultimately the largest cryptocurrency in the world reached $ 58,331 per coin.
After setting a new record, Bitcoin temporarily fell below the $ 48,000 mark on Tuesday. At the time of publication of the article, the BTC exchange rate is around $ 47,825, which means a decrease of over 12% in the last 24 hours. On a weekly basis, it is down over 3%.
It's worth noting that Bitcoin's market capitalization recently hit the magic barrier of $ 1 trillion. This year it has already increased by more than $ 500 billion. Meanwhile, the capitalization of all cryptocurrencies surpassed $ 1.8 trillion yesterday - now it has dropped to around $ 1.6 billion.
Opinions and forecasts
According to Nikolaos Panigirtzoglou, JPMorgan Chase & Co.'s strategist, Bitcoin's value has roughly tripled in the last three months, but its liquidity has declined, making it vulnerable to sharp price fluctuations.
"Market liquidity is now much lower for Bitcoin than for gold or the S&P 500, meaning even small flows can have a big impact on the price," wrote Panigirtzoglou.
Earlier, bank strategists warned that the current price was "unsustainable" unless the cryptocurrency's volatility soon fell.
This probably isn't the end of the decline, according to David Lifchitz, CIO at ExoAlpha. "There could be a 15% correction ... before new highs are reached," said Lifchitz. "The more parabolic and fast the upward movement is, the softer it is, so going back would be more than welcome," he added.
In his opinion, the cryptocurrency could slide to $ 50,000, although it does not rule out a further decline to $ 40,000, while "the $ 30,000 zone looks like a bottom line if things get worse."