“Shaking out profit takers and ‘weak hands’ is necessary for BTC to make strides upwards.”Īccording to Chainalysis, a blockchain-analysis firm, bitcoin’s recent rally to new record highs above $40,000 may have been too much to resist for speculators who have only recently nosed into the cryptocurrency arena, lured by the outsize returns of recent years. “While 10%+ drawdowns shake conviction, these moves have been met with strong bids,” Delphi Digital, a cryptocurrency analysis firm, told clients Friday in a note. That’s just above the $29,112 level where bitcoin started off the year, following a 2020 when it quadrupled in price. But in absolute dollar terms, that $2,690 drop was less than last week’s $3,950 loss, showing just how far bitcoin’s price has climbed since then.Īccording to Kraken, the cryptocurrency exchange, buyers appeared to materialize last week whenever prices fell to about $30,000. Related: Market Wrap: Bitcoin Hits $34.8K While Ether Volatility SkyrocketsĪ quick glance at price charts shows that declines at least as large as last week’s 9.9% retreat have happened nine times in the past two years.Īnd the cryptocurrency’s price has risen so dramatically and consistently over the period that those prior corrections almost look quaint. The worst sell-off in recent memory was the 33.5% weekly plunge in March 2020, when the devastating economic toll of the coronavirus became clear to global investors. Market movesīitcoin is coming off its worst week in almost five months, but the main takeaway, according to veteran digital-market traders and analysts, is that it wasn’t really all that bad. Gold strengthened 0.4% to $1,864 an ounce. stock futures pointed to a higher open as investors weighed the odds of more economic stimulus. In traditional markets, Asian and European shares rose and U.S. Read More: Big Investors Stacked up Ether as Price Rose to Record High “Given the dip from bitcoin and the steadiness of, we could see investors move capital into the latter as they look for the next crypto asset that is going to perform in the current bull run,” David Derhy, an analyst with the trading platform eToro, said in emailed comments. Related: More Institutional Investors Are Buying Ether, Seeing It as a Store of Value