The dip in Bitcoin price today is arguably one of the coin’s worst performances in the past few weeks and emotions amongst investors in the market following this dip are high.
The entire cryptocurrency market is experiencing a drop sparked by a massive drop in Bitcoin (BTC) price, the first-ever digital currency. Per a report from CNBC, the cryptocurrency market shed off as much as $170 billion in a single day dropping to $955 billion at the time of writing in contrast to the celebrated market cap figure above $1 trillion just a few days ago.
The drop in the market comes following a 14.10% drop in the price of BTC to $35,133 at the time of writing according to CoinMarketCap. Bitcoin which contributes as much as 68% to the entire industry’s market cap influenced an encompassing drop in the prices of other assets including Ethereum (ETH), Litecoin (LTC), XRP, and other altcoins.
The drop in the price of Bitcoin can be attributed to the profit-taking moves by some investors particularly those who have held onto Bitcoin for months and who see the current ATH as the best opportunity to rake in some profits. The buying momentum may be temporary as the recent volatility in the price of Bitcoin has suggested, and further bearish dips in BTC from this point may spark more impulsive profit taking which may remodel the price events that the coin witnessed when it hit its first significant all-time high in December 2017.
With Bitcoin Price Down, How Can Bullish Projections Help?
In the past month, Bitcoin has seen a gain of over 97% with as much as a 10% increment in 2021 consolidating the bullish rally it ended the year 2020 with. The dip in the coin’s price today is arguably one of its worst-performing days in the past few weeks and emotions amongst investors in the market following this dip are high.
At this point, only very few factors can prevent a Bitcoin holder from selling off their holdings and one of them includes the consistent bullish projections from analysts in the space. Chief amongst the recent analysts call for increment in Bitcoin price comes from investment banking giant JPMorgan Chase & Co (NYSE: JPM). The firm noted that the fact that Bitcoin is competing with Gold as a hedge against inflation will make its price to skyrocket within the next decade up to about $146,000 per Bitcoin.
Other Bitcoin bulls including billionaire Chamath Palihapitiya believe 1 BTC could trade for as low as $100,000 in the near term. Bullish calls like this can influence numerous BTC investors to wait out the temporary sell-offs in anticipation of a bigger gain ahead.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.