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Hangover on Coinbase? This is the reason why bitcoin is likely to suffer the steepest slide since February


Bitcoin’s price sank into a correction zone on Sunday morning, marking the biggest slide in digital assets since February, which came after a remarkably lengthy period for the crypto industry. death.

At the last check, the price of bitcoin
BTCUSD,
-14.69%

late Sunday morning at $ 55,773.11 down almost 14% from the recent peak on CoinDesk of $ 64,829.14. The drop from the top of the cryptocurrency meets the widely accepted definition of a correction in the asset.

However, the 10% or better reductions in bitcoin are quite popular because the fledgling asset is seen as volatile capital. Last time cryptocurrencies slipped decisively lower opinion from Treasury Secretary Janet Yellen at a New York Times conference, DealBook was blamed for the slump.

Around this time market participants continued to be haunted by the specter of a Treasury crackdown but were also listing a few other possible causes for bitcoin’s correction.

Read: Cryptocurrencies in the long term: what is the outlook?

The excitement about cryptocurrencies

Some industry participants point out that the rise of speculative assets like dogecoin is a sign that the digital asset market is inflated and prone to a downturn. Dogecoin price has skyrocketed more than 7,252% from the beginning of the year until now at their recent peak.

Galaxy Digital
GLXY,
+ 7.59%

CEO Michael Novogratz says that although he sees bitcoin reaching $ 100,000 by the end of 2021 and $ 500,000 by 2024, he believes the market will be marked by the chaos he feels prominent by An insane appetite for assets like dogecoins
DOGEUSD,
+ 8.89%
,
which was originally created as a bitcoin imitation and considered by some to possess limited utility.

See: Who Is Laughing Now? Dogecoin spike created millionaires overnight

Novogratz stated that Coinbase Global’s crypto platform listing
COIN,
+ 5.96%

the list was motivated “A lot of madness” surrounding dogecoin and added that “that never ends well,” said at the virtual event hosted by MarketWatch and Barron’s on Wednesdays.

Crackdown? Or ‘FUD’

Others point to the prevalence of fear, uncertainty and doubt, or FUD, as the crypto community describes it.

Bloomberg News reported that further speculation about a U.S. Treasury Department’s crypto crackdown tied to the use of digital assets for money laundering, without specifics, is also weighing on prices.

Hangover on Coinbase?

Several market participants have suggested that the highly anticipated Coinbase listing on Nasdaq Inc.
NDAQ,
+ 0.07%

will demonstrate a new top for the crypto market and put prices under pressure following a sharp rally in recent days and a new record for bitcoin early last week.

Payment procedures: Coinbase IPO: Everything you need to know about ‘watershed moments’ in crypto

Yves Lamoureux, president of macroeconomic research firm Lamoureux & Co. based in Montreal, told MarketWatch he fears that the excitement surrounding bitcoin and cryptocurrencies will result in them quitting their jobs as a result. “Can you find out anyone with a discounted opinion?” he asks. “A resounding is not,” he answered.

Read: An IPO on Coinbase is a huge score for the crypto platform’s “Who is Who” list

In any case, the price of bitcoin is still rising thanks to the increasing attention from traditional investors. Several prominent Wall Street players, including Stanley Druckenmiller and Paul Tudor Jones, have accepted bitcoin. Renowned investor Bill Miller, founder of Miller Value Partners, in a letter to the customer on the company’s website, that reaffirmed his bullish outlook for bitcoin.

Bitcoin price has risen about 90% so far this year. Compare, price of gold
GC00,
-0.16%
,
considered a competitor to bitcoin, has dropped more than 6% so far by 2021 and more traditional securities are seeing relatively more returns for pedestrians. Dow Jones industrial average
DJIA,
+ 0.48%

and S&P 500
SPX,
+ 0.36%

up more than 11% for the year to date, while the Nasdaq Composite Index
COMP,
+ 0.10%

9% increase.

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