Investors are presently tense with the recent performance of Bitcoin in the market, with the asset posting one of its worst performances in recent times this week. Bitcoin came into the year on the back of a bullish run, and the digital asset continued the run which spanned the first few days of the new year.
Even though it encountered some limited price corrections, Bitcoin still managed to create massive all-time high records from about three straight days. In the latest CNBC report that was released earlier today, Bitcoin was said to have lost about $100 million from its market cap days after the digital asset celebrated topping a trillion dollars last week.
Bitcoin sheds close to $100 million worth of market cap
The recent drop in the market capitalization of Bitcoin was recorded after the digital asset was pulled down by the bears, losing a better part of its value. Presently, CoinMarketCap reports that Bitcoin now trades at $35,000, and it has also triggered a wide bearish run amongst other digital assets in the market. Bitcoin still leads the digital market when it comes to price gains. It would continue to remain so because other digital assets such as Ethereum and Litecoin can only boast of contributing a smaller part to the crypto market cap.
According to analysts, the bears were able to take over the momentum of Bitcoin after several of its big investors started to cash out on the digital assets after holding it for a long time. Most of them saw the latest all-time high as the best opportunity to take in their profit and wait for another bullish run. Even though the market is still recording a buying momentum, analysts mention that it has not been enough to help the price of the asset because it is only small investors that are making the moves.
Jp Morgan analysts calm crypto community fears over the decline run
It is no gainsaying whatsoever that Bitcoin might still make a bullish run with the digital asset posting a total gain of about 300% in 2020 alone coupled with a 40% gain in just eight days into the new year. Investors would be hoping that this recent move is temporary, and if it continues for days, most of them would have to take their profits and losses, which could spell something terrible for Bitcoin. Like the coronavirus pandemic triggered sell-off that happened in March, which saw Bitcoin lose half of its price tag, the digital asset could go way below if traders continue to desert the market.
The only thing that is presently stopping a massive sell-off is that traders believe that the coin would make a remarkable comeback after every decline. They would be waiting earnestly for the leading digital assets comeback this time around.
Wall Street giant JP Morgan has calmed the entire crypto market’s fears with the investment likening Bitcoin to hold in terms of hedge against inflation. With the American economy set to welcome another round of stimulus checks, Bitcoin could be the only savior that everyone across the countries and other countries battling inflation needs.