“It’s scary when the price of bitcoins just goes up,” said James Putra, vice president of product strategy for TradeStation Crypto. “This retreat was necessary.”
Just last week, a strategist at Bank of America said the jump in bitcoins could be the “mother of all bubbles,”
; noting that the recent jump is bigger than other known obsessions over the past few decades: gold in the 1970s, dot- coms / tech in the late 90’s and accommodation in the mid-2000s.
So the decline in the last few days is a “health correction” that is “due a long time ago,” according to Naeem Aslam, chief market analyst at AvaTrade.
Bitcoin first surpassed $ 20,000 in mid-December and jumped more than $ 30,000 earlier this month – a huge jump from a low of just over $ 4,000 as the Covid-19 outbreak sent global financial assets sharply down last year. spring.
Even with the declines over the weekend and Monday, bitcoin has still increased by more than 10% in 2021 – and has jumped by about 300% in the last 12 months.
Aslam said in a report that bitcoin could fall to the level of 28,000 to 30,000 dollars before reaching the bottom.
“It’s not the time to panic, but to look at this possibility from a more optimistic lens,” Aslam said, “because the bull is not over yet and is still likely to make his journey up.”
Many bitcoin bulls remain optimistic about the future of cryptocurrencies, citing the fact that digital payment giants Square (SQ) and PayPal (PYPL) let consumers buy and sell it and invest in it with many of the best institutional investors, including Paul Tudor Jones, Stanley Drakenmiller and Anthony Scaramucci.
Senior Executive Director at Black stone (BLACK), the world’s largest asset manager, recently said bitcoin could displace gold as a major asset that investors could use to hedge against inflation and the weaker dollar.