Bitcoin Price Sees Largest Daily Loss in 10 Months
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Bitcoin ended Thursday down 13%, posting its largest daily drop since the market crash of March 2020.
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The leading cryptocurrency’s drop is “probably just a dip,” according to Techemy Capital trader Josh Olszewicz, who is not expecting a prolonged correction.
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Bloomberg analyst Mike McGlone agreed, telling CoinDesk he could see bitcoin “probing for support and resistance within a mostly $30,000 to $40,000 range for awhile until embarking on the next leg of the stair-step rally.”
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But Guggenheim’s CIO Scott Minerd thinks bitcoin maybe have topped temporarily, saying that a retrace to $20,000 is possible.
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Significant selling over the past week on U.S.-based exchange Coinbase signals profit-taking by investors, per CoinDesk’s prior reporting, after bitcoin nearly tapped $42,000 earlier in January.
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Leading alternate cryptocurrencies (altcoins) like ether and chainlink also recorded double-digit percentage losses.
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Thursday’s drop helped erase most of bitcoin’s yearly gains, with the cryptocurrency now up only 6% in 2021.