In the morning of January 22, the price of the leading cryptocurrency fell below $29,000. Subsequently, the price retraced to above $30,000, but analysts did not rule out another fall.
Data: TradingView.
On the Bitstamp exchange, quotes reached up to $28,800. At the time of writing, the asset was trading around $31,000.
Over the 24 hours, the cryptocurrency shed about 5% of its value.
Managing partner of Kenetic Capital, Jehan Chu назвал one of the reasons for Bitcoin’s decline the recent comments by Janet Yellen during U.S. Senate hearings. The candidate for the post of Treasury Secretary noted that the cryptocurrency raises concerns due to its use in financing terrorism.
Chu described the price move as a ‘natural correction’ and added that it would not ‘break the unprecedented assimilation of Bitcoin into the DNA of Wall Street, which would bring the level to $100,000 this year’.
The head of the U.S. arm of the cryptocurrency platform OSL noted the influence of Asian users on the price of the leading cryptocurrency:
“In recent days, Bitcoin traded about 30% below its all-time highs, and we have seen Asia locking in profits ahead of the Chinese New Year.”
According to him, the next key levels on the downside are $27,750 and $25,800.
Economist Saifedean Ammous, author of “A Short History of Money, or Everything You Need to Know About Bitcoin,” stressed that the current price of the cryptocurrency precisely matches the popular Stock-to-Flow (S2F) model. Its author, the popular blogger PlanB, is confident that the quotes for ‘digital gold’ will reach the range $100,000–$288,000 by December 2021.
🎯🎯
Everything is going exactly according to schedule https://t.co/9EHxif3uCB
— Saifedean.com (@saifedean) January 22, 2021
Earlier, CryptoQuant CEO Ki Young Ju stated that institutional investors would not allow Bitcoin to fall below $28,000, as many had invested around that level. Now he is not sure, pointing to the ‘Coinbase Premium’ index. In uptrends, the indicator was above $50 amid the inflow of large investors into Bitcoin on the leading U.S. exchange. Now they are selling the asset, the head of CryptoQuant noted.
Here’s why we need to pay attention to Coinbase Premium.
It was always above +$50 when BTC was about to break 20k, 30k, and 40k, meaning there were huge spot inflows from high net-worth individuals and institutional investors in Coinbase.
Chart 👉 https://t.co/RpcUEnGxB6 pic.twitter.com/Y1os7vwyGk
— Ki Young Ju 주기영 (@ki_young_ju) January 22, 2021
Analysts at Skew drew attention to the drop to below 10% in the premium to the price of GTBC shares — a tool popular with institutional investors for exposure to the leading cryptocurrency.
GBTC premium < 10% pic.twitter.com/tYySRhqACc
— skew (@skewdotcom) January 22, 2021
The Fear and Greed Index, for the first time since October 2020, dropped to 40.
Data: Alternative.
On the eve, Guggenheim Partners’ investment chief Scott Minerd predicted that the price of the leading cryptocurrency would fall to $20,000. In his view, its peak for this year has already passed.
The new all-time high for Bitcoin was reached on January 8, 2021.
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