Dubai: After achieving record securities week after week in recent months, Bitcoin’s value has fallen as the world’s leading investors abruptly sold their investment positions to reduce their losses.
The decline has forced the excitement generated through the colossal rise of the world’s oldest cryptocurrency to be beaten and caused primary lenders to sound the alarm of a near collapse, while suggesting that Bitcoin’s value would possibly have reached its peak by now.
The dizzying value of Bitcoin in December and early January has led many investors to position their hopes in cryptocurrency; however, the value of virtual assets has followed a downward trend over more than two weeks.
Cryptographic assets known for their volatility reached a minimum of $32939 (120985 Dh) and $30875 (113404 Dh), respectively, for more than 24 hours; however, he last noticed a quote of more than 0. 52% to $31,768 (116,684 Dh).
The value of Bitcoin fell 4% after reaching the point of $35,000 (128,555 Dh) on Monday. The value of the maximum popular cryptocurrency dropped to $30,875 (113,404 Dh) and then increased to more than $32,000. Bitcoins) have sold their investment positions in the cryptocurrency.
Meanwhile, the largest cryptocurrency of the moment in terms of market capitalization, Ethereum, trades marginally in green at $1310 (Dh4811). However, other primary cryptocurrencies such as Stellar, Ripple and Tether are listed in red.
Cryptocurrencies have been under pressure in recent weeks despite interest from primary monetary establishments such as BlackRock and Goldman Sachs.
In a recent survey conducted through leading money bank Deutsche Bank, which surveyed 627 global market professionals from thirteen to 15 January, respondents indicated that Bitcoin was in the “extreme bubble” area, implying an imminent collapse and the fact that costs have already peaked. .
On January 7, Bitcoin crossed the long-awaited barrier of the value of $40,000 (146,920 Dh) and temporarily rose to $42,000 (154,266 Dh). High stocks have led JP Morgan analysts to assign that the cryptocurrency can succeed at $146,000 (536,260 Dh). in the long run and compete with gold.
However, analysts at the U. S. -based monetary giant expressed doubts this week and warned that the electronic currency could re-trade above $40,000 (146,920 Dh)”, leading some of the world’s largest investors to withdraw their investments.
JP Morgan strategists have lowered their expectations for Bitcoin after dealing with this scenario. Weak demand and the option for investors to make flight profits are preventing Bitcoin from going back to the stocks two weeks ago, analysts said.
The value of cryptocurrencies has traditionally mimicked a roller coaster ride: the value rose 52,000 consistently with pennies from 2011 to 2013, then fell to more than 80 consistently with pennies the following year.
Since then, it has reached more than 17 times its previous peak, to fall back through the part. Throughout the history of cryptocurrency, credible voices have presented logical arguments that it would pass “to the moon” or sink to zero.
Just a few days after crossing the $40,000 mark earlier this year, Bitcoin fell below $30,000 (Dh110) on January 11. Since then, the virtual currency has fluctuated between $31,000 (113,863 Dh) and $35,000 (Dh128,555), peaking up to $39,000. (143,247 Dh).
In early 2020, Bitcoin had an average value of $7300 (26813 Dh) and closed the year at more than $29,000 (106,517 Dh), which means an approximate expansion of 400% in 12 months.
In early December last year, the price of the cryptocurrency hovered around $19,000 (DH 69,787), an increase of 53% in a month, then, in the first days of 2021, exceeded $42,000 (154,266 Dh), then lost 20%. of its price ever since.
Bitcoin has experienced greater liquidity depletion for years, in part because the budget is withdrawn from cryptocurrency exchanges, but also because cryptocurrencies continually evolve into the hodlers.
Hodlers is washing his hands of all this volatility. They ‘hodl’, which is helping them counteract two downward trends in the non-unusual market: FOMO (fear of missing), which can lead to higher purchases, and FUD (fear, uncertainty and doubt), which can lead to promoting at low prices The latter is called ‘SODLing’.
For fervent cryptocurrency supporters, known as maximalists, HODL represents more than a strategy to govern FOMO, FUD and other emotions or emotions that erode profits. These real “hodl” rs because they believe that cryptocurrencies will eventually update other currencies and shape the basis of all long-term economic structures.
The most recent knowledge shows that about 270,000 Bitcoins were transferred to savings entities or “holders” last month.
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