Bitcoin has experienced the largest recession in the past 10 months
On January 21, Bitcoin experienced its largest recession since the market crash in March 2020.
The 13% decline in the BTC rate erased a significant part of the gain for the current year, reducing this figure to 6%. During the collapse, the price dipped below $ 29 thousand for the first time since January 5. At the time of publication, the leading cryptocurrency is trading at $ 30.8K.
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According to some analysts, yesterday’s downturn indicates that Bitcoin may have reached its short-term price peak and entered a phase of stagnation. They do not rule out a rollback of the rate up to support levels in the range of $ 20-24 thousand.
Recent reminders from representatives of large financial companies about the cyclicality and volatility of digital assets may have also prompted investors to take profits. Since many people use Bitcoin as a tool to diversify their portfolio, a sell-off to minimize risk may be justified.
, depositphotos, chart: TradingView