Bitcoin plunges after record performance

Bitcoin plunges after record performance

London | The price of bitcoin fell 18% on Monday after having crossed record after record since the end of 2020, illustrating the volatility of the first cryptocurrency which worries the British regulator in particular.

Bitcoin was losing nearly a fifth of its value to $ 31,225.85 on Monday, according to data compiled by the Bloomberg agency, which had not happened to it since a plunge in March 2020, when the COVID pandemic -19 had caused panic in the markets.

He even had a time plummeted by 20% in session Monday.

But observers seemed little surprised by this movement.

“A sell market and such intense volatility can scare the uninitiated,” but this correction was to be expected, confirms Edward Moya, analyst at Oanda.

At the end of 2020, the price of bitcoin began to climb, initially driven by the increasingly keen appetite of investment funds and companies.

Bitcoin, created by anonymous people and managed by a decentralized network, has emerged as the ideal asset for investors worried about central banks increasing monetary easing measures.

Analysts at Bank JP Morgan thus compare bitcoin to digital gold. If they had warned that a price correction was likely, they are betting long term on a value of bitcoin of $ 146,000.

By 2020, the price had quadrupled, and even with the correction of the last few hours, bitcoin remains up 6.5% since the start of the year. On Friday, he ventured around $ 42,000.

The risk for investors is real, however, as the British financial regulator, the FCA, has pointed out.

“If consumers are investing (in cryptocurrencies), they must be prepared to lose all of their money,” he said in a statement Monday.

Share Button