Bitcoin has experienced the largest recession in the past 10 months

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.

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

Bitcoin has experienced the largest recession in the past 10 months