Bitcoin Value Falls 11% As Traders Cash In
Bitcoin has seen a significant increase in value this year, but it seems that all good things must come to an end, as its value has fallen 11% after investors cashed in on its value.
Recent months have seen the value of Bitcoin rise considerably, but it seems that this trajectory is coming to an end after a sharp 11% drop in worth.
The value of Bitcoin fell from $19,497 to $16,725 this morning. However, despite this drop, experts are still confident in the ability of the currency to bounce back and thrive. In fact, some have claimed that this drop or ‘cool down’ is to be expected.
The drop has likely occurred as a result of crypto-traders moving large sums of money. While some may be cashing out of the Bitcoin market, it seems that this behaviour has been anticipated.
A crypto trader at GSR, John Kramer, told Markets Insider:
It feels more and more like we’re hitting a Bitcoin tipping point. In fact, a cooldown is to be expected. But with more well-known fund managers and institutions re-examining their Bitcoin theses every day, it’s getting harder to not take the asset more seriously.
The increase in the value of the cryptocurrency has largely been attributed to it not following the conventional economic setup that most currencies are regulated by. Due to its unique nature and the ability to not rely on stimulus packages like typical assets, cryptocurrency has managed to thrive in a time of economic uncertainty. As a result, cryptocurrency is expected to bounce back and achieve record value.
The unique proposition of Bitcoin has led experts to believe that the currency will continue to grow. The creator of analytics firm CryptoQuant, Ki-Young Ju, tweeted his belief in a record value in the coming days:
All Exchanges Inflow Mean increased a few hours ago, it indicates that whales, relatively speaking, deposited $BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
Going forward, it will be interesting to see if industry analysts are correct about the resilience of Bitcoin and whether it can reach a record value by the end of the year.
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