Bitcoin Falls after New All-Time High Above $61,000
After jumping to a new record of $61,742 on Saturday, Bitcoin’s rally over the weekend comes to a halt with the asset experiencing extended losses.
The largest digital token decreased by as much as 5.5% on Tuesday, March 16, 2021, and was trading at about $55,600 as of 10:58 a.m. London time. Despite its sharp volatility, Bitcoin increased by almost 1,000% in the past year leaving assets like stocks and gold way behind it.
The weekend surge of the coin was to some extent caused by the optimism that some of the cash from the U.S. stimulus checks could flow into the financial markets. Investors are collecting gains after the token’s recent rally and analysts see the digital asset bouncing back to its recent heights and even reaching as high as $62,000 before experiencing another fall. They expect the buying to resume as the stimulus boosts the economy and stock markets go up.
Institutional interest by world-famous companies such as the $1.5 billion Bitcoin purchase by Tesla, brought Bitcoin and other cryptocurrencies back on center stage leaving critics in disbelief and championing that the coin is in a stimulus speculative bubble bound to burst once the economy takes a turn for the worse.
Drop Speculations
The hype around crypto has got crypto mining and crypto trading-related stocks skyrocketing and even outperforming Bitcoin with the U.S.- listed miners Riot Blockchain and Marathon Digital Holdings soaring by more than 8,700% over the past year.
Market specialists expect a correction in Bitcoin and other cryptocurrencies due to their accelerated rallies in such a short timeframe but acknowledge that the long-term outlook remains bullish due to the growing number of leading financial institutions expressing an interest in adopting cryptocurrencies.
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