Bitcoin fell below $ 29,000 in yesterday’s volatility trading as investors profited from a weekend rally that first exceeded $ 34,000.
However, the world’s most popular digital currencies continued to rise above $ 32,000 later in the day. This suggests that the market is not yet heading for the spectacular decline seen in 2018.
Bitcoin’s value almost quadrupled last year as a new wave of investors acquired the cryptocurrency boom. While some institutional investors buy Bitcoin and other digital currencies as a hedge against traditional market volatility, the majority of professionals are skeptical of their value and stability.
The final value of Bitcoin was $ 31,728.47, down 5.5% that day. A month ago it was worth less than $ 19,000. Ether, the world’s second most popular digital currency, rose yesterday to a three-year high of $ 1,151.
As the Bitcoin investment market grows, derivatives traded in digital currencies will also be available, which can deteriorate market movements. Some analysts have suggested that Bitcoin derivatives are behind yesterday’s volatility.
Sui Chung of CF Benchmarks, a digital currency index provider, said, “Bitcoin’s implied volatility has reached its 10-month high as options traders expect significant price behavior over the last 10 days. I did. “
Bitcoin was of little value when it was launched in 2009. It became equivalent to the US dollar in 2011. Bitcoin prices rose 1,375% in 2017, but halved in January 2018. It started in 2020 for about $ 7,000.
Cryptocurrencies have no physical form and only exist as strings of computer code. Yesterday, 18.6 million Bitcoins were in circulation, worth nearly $ 600 billion in total. A handful of big-name holders, known as Bitcoin whales, are believed to have a significant impact on prices.
Profit taking sends Bitcoin to Spin
https://bmmagazine.co.uk/news/profit-taking-sends-bitcoin-into-a-spin/ Profit taking sends Bitcoin to Spin