NEXO’s chief executive speculates that bitcoin’s recent correction may be driven by retail investors

Since January 8, the price of bitcoin (BTC) has fallen sharply, falling by more than $10000 at most. Antonio trenchev, chief executive of NEXO, said retail investors could be part of the reason behind the decline. “The price correction we’re seeing is triggered by retail investors, who follow the institutions that set the highest bitcoin price,” he told cointegraph on January 11 “Once the price of bitcoin exceeds $40000, the yield will reach a high point, which is understandable to trigger a quick sell-off by small investors. There have been a lot of selling transactions in recent days, and the bitcoin price drop is the result of the accumulation of these transactions. ” Bitcoin quickly doubled to nearly $42000 on January 8, after breaking a record high of nearly $20000 in 2017. Over the next few days, that figure fell about 28% to nearly $30100. Price increases are usually accompanied by a correction, although a correction does not necessarily mean the end of the macro bull market. So what will mark the peak of bitcoin’s price? “There are some observable signs that deserve attention,” trenchev told coitlegraph on January 8. Regulation, for example, has a strong influence on the market. It seems that the tightening of encryption rules may prevent new buyers. ” In the past few years, US regulators have increased their investment in cryptocurrency, which may be a sign that the industry is maturing. Several legal responses have come to the fore recently, including a proposal by the U.S. government to track digital assets from exchanges. “It’s even possible that the euphoria caused some kind of crash, although I suspect it’s a big problem,” says trenchev “The annual” crash “since 2013 has been around 25% of the peak earlier in the year, but now we see bitcoin at an unprecedented high,” he added “This adjustment is the inevitable side of market behavior,” he said on January 8, referring to the smaller correction that occurred that day. “When it comes to bitcoin price trends, there are a lot of institutions involved, and that’s right – however, retail activity is something to watch closely, which can be used to look for signs that the market is peaking,” trenchev explained. A lot of people will panic, take their profits and leave, which may create a domino effect in the rest of the market. ” In the second half of 2020, bitcoin attracted the attention of mainstream giants such as MicroStrategy and MassMutual, which may make this bull market different from previous years. As a blockchain news information platform, the information provided by cointegraph only represents the author’s personal views, has nothing to do with the position of the Chinese platform of cointegraph, and does not constitute any investment and financial advice. If you need to reprint it, please contact the relevant Chinese staff of cointegraph.

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