Since January 8, the price of Bitcoin (BTC) has fallen sharply, falling by more than $10,000 at most. Nexo CEO Antoni Trenchev said retail investors may be part of the reason behind the decline.
He told Cointelegraph on January 11: “The price corrections we are seeing are triggered by retail investors who follow the institutions that created new highs in Bitcoin prices.”
“Once the price of Bitcoin exceeds $40,000, earnings will reach a high point, which triggered a rapid sell-off by small investors, which is understandable. There have been a large number of sell-off transactions in recent days, and the decline in the price of Bitcoin is the accumulation of these transactions. the result of.”
After brea
king through the historical high of nearly $20,000 in 2017, Bitcoin quickly doubled, rising to nearly $42,000 on January 8. In the next few days, this digital asset fell by about 28%, to nearly $30,100.
Price increases are usually accompanied by a correction, although a correction does not necessarily mean the end of the macro bull market. So, what will mark the top of Bitcoin’s price?
On January 8, Trenchev told Coitelegraph: “There are some observable signs that deserve attention. For example, regulation has a strong influence on the market. It seems that regulatory activities that tighten encryption rules may deter new buyers.”
In the past few years, US regulators have increased their investment in the field of cryptocurrency, which may be a sign of the maturity of the industry. Several legal countermeasures have received attention recently, including a proposal by the US government to track digital assets from exchanges.
Trenchev said: “It’s even possible that some degree of crash was triggered by over-excitement, although I suspect this is a big problem.” He added: “Since 2013, the magnitude of the “crash” each year has been earlier in the year. About 25% of the peak at that time, but now we see Bitcoin has reached an unprecedented high.” He said on January 8: “This adjustment is an inevitable aspect of market behavior,” he was referring to that day. The smaller callbacks.
Trenchev explained: “When it comes to Bitcoin price movements, many institutions are involved, and that’s right-however, retail activity is worth paying close attention to. This can be used to look for signs of the market peaking. Many people panic and take Keeping their profits and then leaving the market, this may give the rest of the market a domino effect.”
In the second half of 2020, Bitcoin has a
ttracted the attention of mainstream giants such as MicroStrategy and MassMutual, which may make this bull market different from previous years.
