Bitcoin posts biggest daily drop since market crash of March 2020

Some crypto experts anticipate such losses are coming from widespread profit-taking by U.S. and European investors.

The flagship crypto, Bitcoin, suffered massive losses in the early hours of Friday, as almost all the gains recorded in 2021 vanished into thin air, thus posting its largest daily drop since the market crash of March 2020.

Some crypto experts posit that such losses are coming from widespread profit-taking by U.S. and European investors, and that worries about extra regulation has driven the crypto asset toward a weekly loss of more than 25%.
Top-rated crypto assets like Ethereum plunged by almost 16%, while Chainlink also recorded double-digit percentage losses.

READ: Finance leaders of G7 countries strongly support crypto regulation

Also weighing on prevailing market conditions seen across the crypto-verse, data retrieved from Glassnode, a crypto analytic firm, reveal bitcoin $BTC Supply in Profit (1d MA) just reached a 3-month low of 16,899,766.137 BTC.

The previous 3-month low of 16,903,691.779 BTC was observed on 11 December, 2020

📉 #Bitcoin $BTC Supply in Profit (1d MA) just reached a 3-month low of 16,899,766.137 BTC

Previous 3-month low of 16,903,691.779 BTC was observed on 11 December 2020

View metric:https://t.co/FzSS3snpDH pic.twitter.com/ODVjtiOvag

— glassnode alerts (@glassnodealerts) January 21, 2021

What this means: Consequently, Jesse Cohen, a senior crypto analyst, in a note to Nairametrics, spoke on the outlook for Bitcoin in 2021.

READ: Bitcoin’s market value now $468 billion, bigger than GDP of Africa’s largest economy

“I expect Bitcoin to remain highly volatile to the downside in the new year, given the potential for more scrutiny and tighter regulation. That should see prices fall back from their record highs, with the prospect of increased regulation being the most important factor affecting Bitcoin in 2021.”

However, as it gained more than 300% in 2020, many crypto experts wonder if BTC can continue such rally this year.