- Bitcoin prices plunged to $26,937.67
- An analyst believes that prices of bitcoin could even go up to $30,000 after holidays are over
Bitcoin prices fell to $26,000 on Tuesday after doing the trading above $28,000. This, however, is a temporary phase for the coin due to low investments in the market. Holiday lull is the reason to see the bearish trend in the coin. Traders and analysts believe that bitcoin will recover fast in the new year.
Bitcoin prices plunged to $26,937.67
The number one by market capitalization and the most favoured cryptocurrency, Bitcoin saw a bearish trend on Tuesday when the number plunged to $26,000 after doing the trading above $28,000 in the last week. Some might be a little disturbed about the bearish movement of the Bitcoin but many market participants are optimistic about the future of bitcoin and see it as a money-making currency in the next year.
The marketers are of the opinion that institutional investors and retail investors together will push the prices of Bitcoin higher. But this could only happen after the holiday season. Bitcoin on Tuesday traded at around $26,937.67. It gained $0.37% in the last 24 hours.
Since it is the time of holidays and the investors are doing limited trading in the last days of 2020, traders and analysts believe that the recent volatility in bitcoin is driven by retail investors. Mable Jiang, Principal at crypto hedge fund Multicoin Capital while talking to the news website explained that it is a holiday season and during this time usually there is a liquidity crunch. This plunge is due to the bullish movement of Bitcoin and the retailers’ interest in the market, especially in China.
An analyst believes that prices of bitcoin could even go up to $30,000 after holidays are over
Jiang further noticed a pattern in the trading activity of the retail investors and saw that they are rolling altcoins into bitcoins and ether. TradeBlock, an analysis firm in its research on the market has observed that the recent highs in bitcoin and ether were due to outflows from XRP.
TradeBlock believes that the only two currencies that are not treated as securities by the SEC are bitcoin and ether. However, one can see the uncertainty in the market due to the SEC’s decision of filing a lawsuit against Ripple Labs who were trading illegal security XRP. So, traders were certain to pile on bitcoin and ether trading to be safe with their assets.
Despite the bitcoin prices falling to $26,000, many marketers are still positive about the price movement of bitcoin. They are optimistic about bitcoin in the coming months, especially when the investment activity returns after the holidays. Denis Vinoukurov, another analyst from London based Brokerage Bequant is of the opinion that it is no doubt that if the retail flow activity gains momentum, the prices of bitcoin could even go up to $30,000.
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