Bitcoin and other cryptocurrencies Dropped Today, a slide likely to stoke rumors about the cryptocurrency bubble.
Bitcoin sunk the highest as 8.7 percent, the highest since August 2020, while other cryptocurrency like Ether saw more than 10% steep declines. The Bloomberg Galaxy Crypto Index slid more than 6 percent at one point.
current conditions are massively over-purchased and bound to be corrected, explained Vijay Ayyar, Head of Market Growth at the Luno Crypto Exchange. So, honestly, I don't think it's strange. I do think we're going to see all-time highs before a bigger drop/correction. Even with this retreat, Bitcoin has more than doubled in 2020 and until recently stood on the door of a record high of $19,511 set in 2017. Bitcoin believers tout acquisitions by institutional buyers, millionaires, and even a hedge toward dollar weakness, as factors why the boom can last. Critics argue that the cryptocurrency's popular volatility is a repetition of dollar weakness.