Bitcoin Dips But Quickly Rebounds To $19,000

Cryptocurrency, Business, Finance, Money, Wealth, Gold

The S&P 500 hit a record high last Wednesday, boosted by the progress of talks on US stimulus. Ensuing uncertainty saw the market dip, despite positive newsflow surrounding Covid vaccinations. And the FTSE 100 also saw some volatility as Brexit talks progressed, and then didn’t progress, and then progressed, and then didn’t, ad infinitum.  

Bitcoin hit a week-low of $17,935 before recovering somewhat and is now back above the $19,000 level. Many altcoins also struggled last week, with Litecoin and TRON all posting double-digit losses but did see a small rebound over the weekend. 

Simon Peters, analyst, eToro

Bitcoin dips but quickly rebounds to $19,000

Despite last week’s momentary dip below $18,000 the recovery was quick and calming. We are now back above $19,000. What is positive to see is that each time the price does try to really sell-off and go lower, buyers are stepping in to support it. Announcements such as Microstrategy securing $650million for another bitcoin buy and MassMutual’s recent $100million purchase certainly helps the bullish case (BITCOMP).

This could be the news that takes us convincingly beyond the $20,000 level as investors buy bitcoin in anticipation of the next Microstrategy purchase. However, in light of the eight-week run we have been on, perhaps a correction is also in order. Such a correction could take us back down to the $14,000-16,000 levels. Whilst I think the probability of a fall to these levels is low (given Microstrategy’s announcement on Friday) I’m not ruling it out completely.

David Derhy, analyst, eToro

Chance of XRP token burn heats up 

Altcoins also struggled last week, with many of the outperformers seeing investors take profits and rebalance portfolios. Chainlink, Tron and Tezos all saw 7-day drops of over 10%. Some of the losses made by XRP in the week were mitigated by solid performance on Wednesday, despite continued talk of an upcoming forced burning of 50bn tokens in escrow accounts.

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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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