Decrease Accelerated in Value Asset Movement… Pay me a trillion dollar market cap
▲ Bitcoin price trend (red). Source Bloomberg Communications
The price of bitcoin, which is regarded as the’bigger stock’ of virtual currency, is seldom hitting the Mac.
According to Bloomberg News on the 25th (local time), the price of bitcoin plunged by 6.7% to 5440 dollars (about 56.9 million won) around 11:55 am on the day. This is a drop of about 17% since it hit a high of $61,742 at the beginning of this month. As a result, the market capitalization of Bitcoin has also been lowered to below $1 trillion.
Bitcoin fell for the last 5 days in a row, and is in the longest downtrend since December last year. The Bloomberg Galaxy Crypto Index, which is based on the prices of five major coins including Bitcoin, is also struggling. Some predict that the bitcoin price could fall to the 40,000 dollar mark.
This trend is interpreted as the fact that individual investors’ sentiment on risky assets has weakened due to the rise in US Treasury yields, which has spread to the cryptocurrency market.
With the acceleration of vaccination for the novel coronavirus infection (Corona 19), citizens are in the process of normalizing their lives, and the observation that the liquidity of the stimulus will now turn to the real economy is gaining strength. The analysis suggests that this is the fact that the call (buy) option trading of US stocks is falling sharply compared to the beginning of this year.
Vijay Ayar, head of Asia Pacific at the Singapore cryptocurrency exchange Luno, said, “The shift to value that is appearing across the asset market is adversely affecting the price of Bitcoin.
Among these, some observations have been made that the price of bitcoin may drop to the 40,000 dollar level. Ari Paul, Chief Investment Officer of Blocktower Capital, said, “I think it is possible for Bitcoin to fall to the $40,000 level,” and “I will buy Bitcoin at that price.”