Bitcoin rebounded after two days of plummeting, but everyone was at a loss about its true value

Source: Sina Finance Bitcoin rebounded on Tuesday, after Monday’s plunge that raised concerns about the future of the world’s largest cryptocurrency. Bitcoin rose 4.9% to $35616 as of 11:30 a.m. London time on Tuesday, down 11% on Monday. The latest roller coaster ride reminds people of bitcoin’s past ups and downs, such as the price bubble in 2017, and has led investors to debate whether this is just a healthy price correction or the end of the latest bull market. “We think the pullback is a healthy performance,” said David grider, chief digital strategist at fundstrat global. He added that he did not see recent price movements as evidence that bitcoin had peaked. Investors who bought bitcoin a year ago are still sitting on more than 300% of their earnings. Who is behind the latest rally is one of the many mysteries surrounding cryptocurrency. Bitcoin funds, momentum chasers, billionaires, day traders, companies and even institutional investors have been mentioned. It’s also difficult to find out why it has fallen as much as 26% in the last two days. For some, a rebound in the dollar could be one of the reasons. The dollar reversed its long-standing decline after the rise in US Treasury yields boosted the dollar’s appeal. “There are signs that retail investors are locking in profits,” said Ryan rabaglia, head of global trading at OSL. “Violent volatility is usually associated with increased retail participation.” At the same time, the world is still awash with monetary and fiscal stimulus measures, some of which may enter cryptocurrency assets. Bitcoin believers continue to see it as a hedge against inflation risk and fiat currency depreciation risk. Some people’s forecasts for the long-term price of the special currency range from $146000 to $400000.

Leave a Reply

Your email address will not be published. Required fields are marked *