After nearing $42,000 on Friday, Bitcoin finally suffered a dreaded correction over the weekend — with almost $10,000 wiped off its price.
BTC sunk as low as $32,829.33 on Monday after another weekend of wild volatility — but this time, erratic market movements were not in the favor of bulls.
The 21.8% slump wiped more than $130 billion from Bitcoin’s market cap and sent shockwaves through the altcoin markets.
Ethereum, Litecoin and Bitcoin Cash all suffered outsized losses as a result of the sell-offs, with ETH’s hopes of setting an all-time high above $1,432.88 dashed after prices tumbled below $1,100.
This is the sharpest drop since Bitcoin’s price started to go vertical in late December. A correction has long been anticipated, with some experts arguing that it’s healthy and allows support levels to be established along the way.
Nonetheless, the dramatic drop will be devastating for newcomers to the crypto sector who decided to invest at such a high price point — hopeful that the surge would continue.
According to some crypto analysts, the crash is also reminiscent of what happened during the last Bitcoin halving cycle. According to Holger Zschaepitz, a dramatic rally seen in 2016/2017 was subsequently followed by a slump of more than 50%.
Whales appear to have been undeterred by the sell-offs. According to Glassnode’s Elias Simos, they have been “gobbling up” BTC ditched in a panic by investors on Monday. It’s also likely that institutions may treat this as an opportune time to increase their exposure to Bitcoin. Kenetic Capital founder Jehan Chu told CNBC:
“This short-term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year’s end.”
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