Bitcoin Bearish Movement Not A Bursting Bubble

four round silver-colored and gold-colored Bitcoins

Global markets hit new heights last week, reflecting the dawn of Biden’s administration as the 46th US president was inaugurated on Wednesday. The S&P 500 was the leading beneficiary, whilst the FTSE 100 also climbed on the ‘Biden bounce’. 

Conversely, bitcoin (BITCOMP) struggled and spent much of the week on a slow but steady decline, but has recovered somewhat over the weekend, currently sitting at $33,400. Ethereum (ETH-X) bucked bitcoin’s trend and hit a new all-time high of $1,456 this morning. 

Simon Peters, analyst, eToro

Bitcoin bearish movement not a bursting bubble 

Bitcoin, having smashed through $40,000 just two weeks ago, is now on the retreat. With the cryptoasset dipping steadily last week, some of its investors will no doubt be wondering: “Is this it?”

In my view, no. Despite the drop, the demand from large institutional investors remains impressive. Institutional investment trust Grayscale is continuing to pick up all the bitcoin it can, CoinTelegraph reported on Tuesday that it had bought some $600m of bitcoin in just 24 hours. The demand isn’t slowing and I believe that many investors will view any significant dip not as a bubble burst but as an opportunity arisen. Investors of all sizes will be looking at a price in the region of $28,000 as an excellent chance to top up their positions. 

Given the run that we have seen in recent weeks, I have mentioned before and still believe that a correction is on the cards. That, I would say, is what we’re seeing now – as opposed to something much more serious like the plummet that we saw at the end of the 2017/2018 bull market. Despite any very short-term movements, the fundamental backdrop for bitcoin remains positive and my minimum price target of $70,000 for the end of 2021 remains in place.  

David Derhy, analyst, eToro

Ethereum all-time high despite stiff competition 

Ethereum bucked the trend set by bitcoin. Instead of sinking, the smart contract platform’s token hit an all-time high on a number of exchanges. These continue to be exciting times for the Ethereum Foundation and its platform, despite the competition heating up from the likes of Polkadot and Cardano, both of which have also performed well this week. The interoperability protocol Polkadot has seen an exceptional rise in 2021, from $8.80 at the turn of the year to an all-time high of $19.32 earlier this month.

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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