Bitcoin went through a deep correction that took it below USD 33,000. Those who are unsure of the future of the cryptocurrency market have even considered withdrawing.
Bitcoin fell below USD 33,000 for the first time in more than a week, and no one knows if that correction will become deeper. The pioneering cryptocurrency was trading at around USD 32,000, after falling by 8.9% and 19.5% over 24 hours and seven days respectively.
That drop of nearly 20% has caused panic in the crypto market, according to data from CoinMarketCap. Technical analyst Michaël van de Poppe considers “the USD 30,000 area must remain so that there is no further correction towards USD 24,000. Otherwise, that would lead to a 40% decline from recent highs.”
The optimism that reigned in the cryptocurrency market in recent months seems to be starting to fade. For that reason, crypto influencer and investor Scott Melker thinks that markets are panicking over Bitcoin’s crash. He adds that many investors have even considered withdrawing.
Gains amid Bitcoin’s Collapse
These experts’ opinion suggests that investors should remain vigilant for a possible drop below USD 30,000. However, some institutional investors have made a profit as the price of Bitcoin retreats.
According to data from CoinShares, outgoing institutional products indicate that there have been gains amid the Bitcoin correction.
During this situation, JPMorgan states that “Bitcoin is not a protection against market crashes.” In this regard, strategists John Normand and Federico Manicardi said that it is the “least reliable coverage during these periods of tension.”
Normand and Manicardi’s opinion contrasts with that of the other JPMorgan strategists, who Nikolaos Panigirtzoglou leads. The latter believe that Bitcoin is driving investors away from precious metals.
Before Deep Bitcoin Correction
After Bitcoin began its biggest bullish rally, it fell from USD 41,152 to USD 30,525. Previously, it had exceeded the USD 30,000 mark in a matter of days before reaching its all-time high above USD 40,000.
“Even though Bitcoin partially recovered from that crash, questioning arose within the market. The pioneering cryptocurrency finally managed to remain above USD 30,000, but many have lost confidence in the cryptocurrency,” analyst Scott Melker mentioned on Twitter.
In this way, Melker refers to cryptocurrency users’ attitude towards Bitcoin’s latest crash. He says that those who are not fully convinced of the future of the cryptocurrency market could leave it.
Hive Blockchain Will Expand its Hash Rate
In recent days, Hive Blockchain announced that it would buy 6,400 ASICs from Chinese firm Canaan Creative. They are looking to reach 1200 PH/s by expanding their stock of machines to almost 10,000 ASICs.
Bitmain’s inability to supply enough cryptocurrency mining equipment has forced companies to turn to other manufacturers. The growing shortage of these devices represents a remarkable opportunity for manufacturers like Canaan and Ebang, among others.
Regardless of the drops that Bitcoin suffers, the pioneering cryptocurrency has proved that it can recover from the worst crises. It has even reached new all-time highs after having dropped well below its previous marks in a matter of days. For that reason, Bitcoin miners have not stopped working and are always looking to optimize their activity.
By Alexander Salazar
