Bitcoin plunges for two days in a row…’evaporation’ of 10% of the cryptocurrency market value

Input 2021.01.22 10:26 | Revision 2021.01.22 10:28

Foreign media reported on the 21st (local time) that the value of bitcoin, the leader of cryptocurrency, plummeted for two consecutive days, and 10% of the total cryptocurrency market total disappeared.

Bitcoin price fell 8% on the 21st to record 31,077 dollars (about 34 million won), falling below the 32,000 dollar level for the first time since the 11th of this month. Considering that it soared to the $41,940 level during this month, it is a’big crash’.

The cause of the decline is unclear. On the other hand, financial minister Janet Yellen analyzed the reason for the decline when he made a negative remark about cryptocurrency, “mainly used for illegal financing” at the Senate Financial Committee hearing on the 18th.

However, the market doesn’t care much. Most investors believe it is a’natural adjustment’, according to CNBC, a US economic media outlet.

“Adjustment happens naturally in any market,” said Michael Sonnensane, CEO of Grayscale Investment. “It’s more natural, especially in the Bitcoin ecosystem.”

He also added, “In 2016-17, a new high was reached only after nearly 30% fell out with six adjustments.”

“The bitcoin market is still very volatile,” said Anthony Scaramucci, founder of Skybridge Capital, citing the early days of Amazon as an example.

“Think of a time when Amazon exploded, when Jeff Bezos and others owned most of Amazon’s stock,” he said. “Amazon also fell by more than 50% in the first three years, but has since found stability. Bitcoin purchase stability. It’s getting better, but it’s not 100% yet.”

Meanwhile, Ethereum, the world’s second largest cryptocurrency, has fallen by more than 9% over the past 24 hours to the level of 1 Ethereum = $1182. The value of Ethereum reached a record high of $1439 on the 19th.