A large number of crypto investors are presently cashing out at record levels amid a significant drop in the value of Bitcoin. The world’s most popular crypto asset dropped as much as $8,000 at the start of Monday’s trading session.
This is the worst daily plunge sighted in the dominant crypto asset since March 2020.
What you should know: At the time of drafting this report, Bitcoin traded at $33,832.77 with a daily trading volume of $100.2 billion. Bitcoin is down 16.08% for the day. It presently has a market value of $629 billion.
Also, Scott Minerd, the Global Chief Investment Officer of Guggenheim Partners spoke on the recent bias coming to play at Bitcoin’s price action;
“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
Bitcoin's parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
However, amid the high sell-offs sighted in the crypto-verse, recent data governing wallet balances from Glassnode an advanced crypto analytic firm revealed that major crypto investors with at least 1000 Bitcoins are buying from these price dips in play at Bitcoin’s market.
Addresses with more than 1k $BTC continue growing at the expense of all others–even as this most recent downturn is taking effect. While you were selling, whales were gobbling up your Bitcoin…
Meanwhile, a leading United Kingdom’s financial regulator, the Financial Conduct Authority, recently issued a piece of stern advice on crypto investments amid a major strong bearish trend coming to play.
The statement highlighted the risks associated with investing in Bitcoin and other leading crypto assets and warned the public there were high chances all their funds could be lost;
- The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.
- Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money.