Bitcoin tumbled down by 9.2% on Monday after hitting the record high during the weekend. First time in history, the crypto surpassed $61,000, trading at $61,742 on Saturday. Bitcoin skyrocketed to its latest all-time high. This was caused by traders’ optimism that some of the Covid-19 pandemic relief payments in the U.S. would end up chasing the crypto’s towering rally.
However, investors eased up on stimulus-fueled bets that had boosted the digital coin on Monday, causing Bitcoin to decrease. This morning, the crypto was trading at $56,325 in London.
Nick Jones, the chief executive officer at the crypto wallet and exchange Zumo, noted that such decline is quite normal, especially after a big rally. He believes that Bitcoin and other cryptocurrencies will manage to sustain the profits they saw this year. However, with cryptocurrencies, it won’t be a steady curve.
Meanwhile, crypto-exposed stocks, including Marathon Digital Holdings Inc., Riot Blockchain Inc., and MicroStrategy Inc., fluctuated, mirroring Bitcoin’s advances and declines.
Will Bitcoin continue to surge forward?
Analysts argue whether Bitcoin will continue to rally or plummet in the coming days. Some think that traders may profit from more stimulus-fueled gains in the short-term, while others aren’t sure about that. Still, should we expect the Bitcoin price to continue climbing in the long-term?
Thus far, the crypto has soared by more than 1,000% during the past year, as the usual speculative demand and the signs of increased institutional and corporate interest boosted it higher.
Chris Weston, the head of research at Pepperstone Group Ltd., noted that Bitcoin had seen some good flow, with investors front running U.S. stimulus checks. However, he added that for bolstering confidence in a “new bull leg,” the crypto needs to stay above the previous high of over $58,000.
Matt Maley of Miller Tabak + Co and Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte, think that Bitcoin has potential for further gains. Maley stated that the crypto could rally toward $75,000 very quickly. Strategist Mike McGlone even went so far as to say that $100,000 could be the next threshold.