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Bitcoin is down after surpassing $ 34,000 per unit

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One day after more than $ 34,000 per unit and reach a new all-time high, the Bitcoin (BTC) had its biggest daily decline since last March. The cryptocurrency was registered this Monday a 17% crash, reach a price below $ 30,000.

Bitcoin is down after surpassing $ 34,000 per unit
Bitcoin is down after surpassing $ 34,000 per unit

In the early hours of January 3rd, Bitcoin hit a price of $ 34,544.94according to CoinDesk. It couldn’t stay there long, however.

In the early morning of Monday, January 4th, around 4:30 a.m. (GMT-6), Bitcoin fell into trading around 1:30 p.m. $ 28,700 per unit, based on data from CoinMarketCap.

Fortunately, the same volatility that brought her down in a matter of hours also helped her recover. Just 5 hours later The cryptocurrency was trading again at around $ 32,100. Since then, and until now, the price of BTC has continued to fluctuate. While it hasn’t returned to $ 34,000, it hasn’t fallen below $ 30,000 either.

In light of these discrepancies, the official Bitcoin account posted a message on Twitter to reassure investors.

“It’s not a race. It’s not a bubble. It’s a bitcoin chain reaction that is spreading like fire in cyberspace. “reads a tweet next to a short video of a bitcoin symbol on fire.

At the beginning of 2020, Bitcoin had an average price of $ 7,300 and closed the year in over $ 29,000. This means an approximate growth of 300% over the past 12 months. From the beginning of December alone, the cryptocurrency was worth it $ 19,000 what represents a 53% more in one month. Then, in the early days of 2021, it surged over $ 30,000 and exceeded $ 32,000 in a matter of hours.

According to Adrian Lowcock, Director of Personal Investments at Willis Owen Ltd.are the losses of this Monday “A reminder that this is a relatively new, very volatile asset that has not yet found its place in the market.”he told Bloomberg. The expert claims that Bitcoin has yet to be overcome “many obstacles” to become important “A useful primary good.”

The potential of this cryptocurrency has been generated quick wins, The expectation that it would be a conventional payment method has made it an object of desire for large investors.

Will Bitcoin continue to rise?

According to the latest report from Glassnode, a company that analyzes cryptocurrency behavior, the Bitcoin has a bright future thanks to it few units available on the market.

Just one 22% of bitcoins in stock They really would be part of the market. Meanwhile, a larger number of large investors are buying the cryptocurrency as a store of value, according to the company. In his calculations, these ever-moving BTCs are only 4.8 of the more than 18.5 million that exist.

The researchers found that the number of bitcoins in motion has decreased in recent months. There are fewer and fewer companies willing to sell their bitcoins. “This suggests that the current bull market is being driven by amazing illiquidity.”says the report.

The study therefore concludes that the lack of BTC in the market predicts a future price increase for the cryptocurrency. In other words, The lower the supply of circulating units, the more expensive it is to procure.

Now all we have to do is keep a close watch on Bitcoin’s volatility to know if it is still a good investment.

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