What Factors Caused Bitcoin’s Latest Pullback?
- Date: 12-Jan-2021
- Source: Forbes
- Sector:Financial Markets
- Country:Middle East
What Factors Caused Bitcoin’s Latest Pullback?
Bitcoin prices have suffered some notable losses over the last few days, falling more than 25% between Friday and this morning as traders sold the digital asset.
The cryptocurrency dropped to as little as $30,305.30 at roughly 11:30 a.m. EST, according to CoinDesk data.
At this point, bitcoin was down more than 26% from the all-time high of $41,962.36 it reached on Friday, additional CoinDesk figures show.
The digital currency has experienced a meteoric rise over the last several months, rising from less than $3,900 in March to nearly $42,000 last week.
By generating these gains, bitcoin has climbed close to 1,000% in under a year.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Several analysts spoke to this impressive rally, as well as its implications.
"The market has been overbought for months,“ said Jeff Dorman, chief investment officer of asset manager Arca.