The falling cryptocurrency prices have dampened the celebration mood of retail crypto investors. Bitcoin price has slumped to $43,030 from the high of over $47,700 on the 1st of January 2021. The prices of other popular crypto tokens like Ethereum, Solana, Cardano, Binance Coin, etc also appear to be in a free fall.
While retail investors have been largely indecisive on the asset, institutional investors have been increasing their stake in crypto. Microstrategy took advantage of the dip and purchased 1900 BTC worth around $91 million on Dec 30, 2021.
Cryptocurrencies overall finished 2021 on a sour note — Bitcoin fell roughly 19% in December, one of its worst months of the year. The Bloomberg Galaxy Crypto Index, which tracks a handful of some of the largest coins, lost near 23% in that period.
According to Darshan Bathija, CEO & CO-founder Vauld, Bitcoin has largely been range-bound since the beginning of December 2021. However, the current price drop could be attributed to the uncertainties all markets are facing.
“The current price drop of BTC can be attributed to the uncertainty all markets are facing, with the spread of the Omicron variant,” said Bathija.“We can expect two very contrasting things simultaneously – many investors will view this as an opportunity to buy the dip, while many will also try to cut their losses, leading to a sellers’ frenzy,” he added.
Alexander Cavendish, CEO of hedge fund Hedonova attributed the current fall in crypto prices to the rotation of money from retail to institutional investors.
“There’s a concept called ‘rotation’ in investments. For every asset class, money changes hands between retail and institutional investors and this tend to happen in cycles or after a significant bull or bear run,” Cavendish told FE Online.
Cavendish expects that bitcoin prices are going to be rangebound for some time now before a strong move to $120,000. “The move from $4K to $60k was on the back of retaining adoption, this move is going to be on the back of institutional adoption,” he said.
For more content based cryptocurrency news and reviews click here
To know the price of the coins click here
Dislcaimerthis news and reviews blogs are only to educate, inform and deliver information to the public and is not an investment advice. Nothing should be taken as an offer to buy, sell or hold any cryptocurrency