On Thursday, Bitcoin declined by more than $2,200, which is its biggest one-day fall in three months. Bitcoin’s price had dropped by 11% and settled at $16,725, while its price increased by 21% during November. Significantly, the dominant cryptocurrency gained 138% during the year.
On Wednesday, the world’s largest cryptocurrency reached its highest level since December 2017 and settled at $19,497. However, Bitcoin could not hit its record of $19,666 set in December 2017.
It has to be mentioned that the price correction may also be a function of crypto traders moving larger volumes of BTC to exchanges, where they can be more easily sold at a more favorable price when the token neared $20,000.
According to a trader at the crypto trading firm GSR, John Kramer, it feels more and more like we’re hitting a Bitcoin tipping point. He said that a cooldown is to be expected and announced that it’s getting harder not to take Bitcoin more seriously, as more well-known fund managers and institutions re-examining their Bitcoin theses every day.
prospective returns from traditional markets are low, and the risks are relatively high
John Kramer also reported that many investors feel that the stock market is utterly divorced from economic reality right now. The S&P 500 reached record highs this week as U.S. coronavirus cases increased and 2,200 Americans were dying every day from the disease. He added that prospective returns from traditional markets are low, and the risks are relatively high.
Additionally, part of the rally in cryptocurrencies in the past several weeks has stemmed from the fact that they have a small correlation to the economy, interest rates, or even other asset classes.
Ki Young Ju, the creator of CryptoQuant, announced that despite the decline on October 26, the world’s largest cryptocurrency may soon reach $20,000. He posted on his Twitter that All Exchanges Inflow Mean boosted a few hours ago. CryptoQuant creator said that it means that whales deposited Bitcoin to exchanges. However, long-term on-chain indicators say the buying pressure prevails. Ki Young Ju announced that he believes Bitcoin will hit $20,000 in a few days.
It has to be mentioned that other digital cons also fell with Bitcoin. For example, Etherum declined by more than 13% and touched nearly $491, while Ripple’s XRP dropped by 20% and settled at $0.49.
However, smaller altcoins have profited from the push into cryptocurrency. Etherum is up by roughly 30% this month, while Ripple’s XRP has more than doubled in value.