Cryptocurrency “volatile” 100 billion USD, investors continue to plunge
The heat to invest in bitcoin has not cooled, though the digital currency “evaporated” more than 10% after two days of selling and billions of dollars in the market were blown away.
|Over the past three months, bitcoin has risen 140%.|
Bitcoin – the most valuable digital currency in the world – continued to drop another 8% on January 21, to $ 31,007. It is also the first time that bitcoin has slipped below $ 32,000 since Jan. 11, according to data from news site CoinDesk.
Over the past 3 months, bitcoin has risen 140%. In the last few weeks, bitcoin has spiked, reaching 41,940 USD earlier this month. There have been no explanations for bitcoin’s shocking volatility in recent weeks, but investors think this could be a natural correction.
“Adjustment is an inevitable part of any market and is especially natural in the bitcoin ecosystem,” said Michael Sonnenshein, CEO of Grayscale Investments. “Between 2016 and 2017, bitcoin underwent six corrections of 30% or more, before peaking,” he said. Sonnenshein added.
Ether, the second most valuable digital currency (by market value), is also down nearly 9% in the past 24 hours, to $ 1,182. Earlier, ether on Jan. 19 peaked at $ 1,439, according to Coin Metrics data.
Total market value of all digital currencies “evaporated” more than $ 100 billion in the past 2 days when falling to $ 918 billion at 11:45 East North American time (ET time), from 1.070 billion. USD set earlier.
Mr. Anthony Scaramucci, founder of global investment company SkyBridge Capital (USA) recommends: “You have to accept a large amount of fluctuations in bitcoin and this is still at a very early stage”.
“Imagine, Amazon and its boss Jeff Bezos and a few venture capitalists are still holding large amounts of Amazon shares, and the company is going through an exponential growth period,” said Anthony. Scaramucci – former White House communications director – added.
“If you look at Amazon in the first three years, you see a 50 percent drop in the stock price. The same goes for bitcoin’s volatility, because you’ve got the hands of the bitcoin holders who are issuing the bitcoins to the market. market, and buying stability is on the rise, but it’s not at 100% yet, ” Mr. Scaramucci said.
Bitcoin slipped two days ago after the new US Treasury Secretary, Janet Yellen, warned that digital currencies were used “mainly for illegal funding”. Secretary Janet Yellen also said the US government will “consider measures to limit the use of digital currencies and ensure no money laundering is carried out through these channels”.
Bitcoin is still plunging despite the news that looks positive for the digital currency. BlackRock Asset Management Fund, which manages $ 7,800 billion of assets, on January 20 submitted proposals for two investment funds to buy bicoin futures contracts. This move is one of the biggest signs that institutional investors are flocking to the digital currency.
For bitcoin speculators, the main reason why the price of bitcoin has soared in recent months has been because of the soaring demand for digital currencies by institutional investors. High-profile investors like Paul Tudor Jones and Stanley Druckenmiller became bitcoin believers, while a number of other asset managers began to include bitcoin in their portfolios.
“Someone would say we saw a bottom in the last bitcoin price correction, but at Grayscale Investments, we know that bitcoin demand continues to explode, especially from institutional investors looking to get hold of. to keep longer, “said Michael Sonnenshein, CEO of Grayscale Investments digital money investment fund.
Mr. Anthony Scaramucci, founder of SkyBridge Capital, said the bitcoin investment fund founded by the company earlier this month intended to invest $ 25 million and then increased to more than $ 60 million. Mr. Scaramucci revealed that Skybridge’s customers are mainly individuals with large net worth.
Bitcoin’s rise in price over the past few months has been partly pushed up like high-value assets such as gold at a time when economies were struggling with Covid-19 and forced to launch stimulus packages. like fiscal. This makes some investors fear inflation will spike.
And skeptics worry, bitcoin is just a market bubble waiting to burst, because it rose to nearly $ 20,000 by the end of 2017, before plunging in 2018.