The most popular cryptocurrency, Bitcoin, continues to amass success, amidst being the most preferred digital asset by investors flocking the cryptocurrency space. However, the cryptocurrency is not one without its ups and downs, as it witnessed a record-breaking dip two days ago.
The most valuable cryptocurrency crashed in prices 48hours from about $58,000 to trade at a bit less than $45,000, a record dip in prices in its entire history. The situation has continued to shock all, including analysts who do not understand the bloodbath in prices of the digital asset.
Is $60K still visible for Bitcoin?
The crash in prices has somewhat stalled at some point, as the cryptocurrency whose market cap has recently hit $1 trillion was able to bounce back to about $52,000 about 24hours ago. The dip in prices of the most valuable cryptocurrency, according to crypto analysts, has now resulted in the cryptocurrency losing about $100 billion in its market capitalization.
Many Analysts and investors continue to envisage a market correction in prices, as the record-breaking drop in prices came as a shock to many. Since last December, Bitcoin has been on a rollercoaster but somewhat stalled a bit in the early part of the year, with Ethereum even outperforming the cryptocurrency. However, the cryptocurrency began to perform at the beginning of the month, fuelling analysts’ expectations of a record-breaking $60K by the end of the week.
Unfortunately, the recent dip in prices without recovery means that the expectations of many in the cryptocurrency will be for it to bounce back rather than hit $60K, as panic sets in. The cryptocurrency which was trading at about $44,000 during the dip 48hours, is now starting to enter the correction phase, as it currently trades at about $51,050—a situation that keeps $60K at bay.
Should institutional investors be worried?
Many Bitcoin investors are yet to express their worries about the dwindling prices, as most feel like this is the time for dip-buying. However, analysts feel like institutional investors might start to panic, considering the quick dip in prices, which is a record-breaking one. Elon Musk’s Tesla purchased about $1.5 billion worth of Bitcoin last month, much to the delight of the entire cryptocurrency space.
The current dip in prices suggests that the investment might not be a loss now but maybe tending towards it if the cryptocurrency does not enter into a solid correction phase. Albeit, new reports suggest that many institutional investors like Jack Dorsey’s Square, who had recently purchased $170 million worth of Bitcoin, are taking advantage of the dip to invest in the cryptocurrency.
That decision was unable to move prices, like Elon Musk Tesla’spurchase which saw the cryptocurrency move by about $4,000 in hours. However, many expect the cryptocurrency to bounce back and enter into another bull run, a move that will excite all, including institutional investors who may start to panic if a market correction is not in sight.