Just after hitting the roof and surpassing its all-time high record from three years ago, bitcoin falls into another slump. The slump in bitcoin’s worth is another proof of how extremely volatile bitcoin market is.
All-time high record surpassed, bitcoin again falls into a slump
Earlier today, Coin Desk reported that bitcoin has gained 6.6% and surpassed its all-time high record with $19,580. As of press time, the price soon dropped to $19,436 and has been in a constant decline since. As of 1345 GMT, Reuters noted that bitcoin sank about 4.4% to $18,841. Bitcoin also weakened around 7% against the dollar on Tuesday. Along with bitcoin, altcoins such as ethereum and XRP also suffer from 7.3% and 8.8% decline respectively. Meanwhile, gold thrived and grew 1.6% higher.
Bitcoin’s slump was predicted?
Noted from Bloomberg, Antoni Trenchev of Nexo London pointed out that the surge in bitcoin is due to Fear of Missing Out (FOMO). Trenchev added that “some of our retail clients borrowing against their Bitcoin to buy more Bitcoin and that will ultimately propel the rally well into the $20,000s.”
Similarly, Vijay Ayyar of Luno Singapore, predicted that bitcoin could grow up until $25,000 before finally suffer from a 30% freefall. The prediction was based on bitcoin’s nature that tends to “get everyone bullish and then dump.”
However, Roland French of Davy Research argued, “the price remains highly volatile and draw-downs can be sharp, but volatility is important for the asset to scale, seek price discovery, attract attention and education and over time this volatility should subside.” French further suggested that the sell-off dragging bitcoin’s price down was likely done by investors for profit gain.
Read also: The Reason Why Bitcoin Price is Fluctuating
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