Bitcoin prices are falling again on Thursday and the drop could set off some short-term bearish alarm bells as the asset is already technically in a bear market after hitting record highs in early January.
Values for the world’s most famous cryptocurrency fell about 10% from Thursday’s lows at around $ 31,000, with the crypto losing 12% over the week, according to FactSet data.
A single bitcoin
Trading with CoinDesk was valued at $ 32,357 at the last check, a decrease of 7.5%.
However, investors did comment on recent comments from financial market participants, which may also help lower prices.
Scott Minerd, Chief Investment Officer of Guggenheim Partners, a new proselyte from traditional Wall Street instruments to cryptos. said CNBC on Wednesday According to CoinDesk, he believed bitcoins could cause a retreat to $ 20,000 after hitting a record $ 41,962.36 on Jan. 7.
“For now, we’ve probably set a top for Bitcoin for the next year or so,” Minerd told the corporate network.
Minerd told Bloomberg News weeks ago that its price outlook for Bitcoin was $ 400,000.
Since its most recent peak, Bitcoin has declined by at least 20% and is the widely accepted definition of a bear market in an asset.
The slump in bitcoins has also fallen below a short-term moving average, the 20-day exponential moving average (EMA) of $ 32,544, according to FactSet data.
EMAs, like simple moving averages, are sometimes used by technical analysts to measure short-term bearish and bullish trends in assets. They can be useful for bitcoins that are subject to large fluctuations on a daily basis.
Hodlers – a popular misspelling of the word “hold” or “holder” in the crypto community – typically don’t focus on the short-term moves in crypto and hold the asset for the long term. And it’s often difficult to tie a specific step in virtual assets to a related message.
However, the markets have been processing the dramatic moves of virtual assets over the past few weeks and months and assessing the outlook for bitcoins and other assets in the Biden administration.
Earlier this week, Janet Yellen, President Biden’s candidate for Treasury Secretary, said she was considering restricting digital assets, fearing using them for money laundering and other ills.
Additionally, some proponents fear that Gary Gensler, former head of the Commodity Futures Trading Commission and professor of cryptocurrencies at the Massachusetts Institute of Technology, can question Bitcoin Regulation, as Biden’s choice for the chairman of the Securities and Exchange Commission.
Still, a number of investors often see Bitcoin’s withdrawals as an opportunity to increase their stake in the speculative market, which is often described as one that mirrors many of the markets Features of an asset bubble.
Minerds Guggenheim is among a number of institutional investors who have taken note of the price recovery in Bitcoin and sought to get exposure to the blockchain-backed asset.
Most recently public submissions revealed that BlackRockThe world’s largest money manager will dip his toes into the world of crypto assets and buy bitcoin futures