Bitcoin has moved away from record highs: What’s the reason?
On April 18 bitcoin noticeably fell in price, which caused most altcoins to decrease in record highs, but not all. Nano (+76%) and VeChain (+28%) added markedly. The correction led to the fact that, if previously there were the top 100 cryptocurrencies, each of which capitalization exceeded one billion dollars, now there are 91 of them left.
For three days, from April 16 to 18, bitcoin was falling from record highs below the level of $60,000, eventually testing the minimum value of $52,82 thousand on April 18. Meanwhile, the upward correction on the same day, which resulted in the cryptocurrency No. 1 entering April 19 at the level of $56.2 thousand, indicates that there is no good reason to talk about the emergence of a steady trend to reduce the price of this asset, at least for now.
Among the reasons for the current departure of bitcoin from the record high, Washington lawyer Jake Czerwinski named the emergence of a rumor that the U.S. Treasury Department is allegedly investigating the activities of several U.S. companies for their possible use of cryptocurrencies in violation of regulatory rules. Czerwinski criticized such a rumor as unfounded.
Expert Vilajey Bojapyati believes that in many ways bitcoin is not going into a steady downtrend of decline, as a significant number of ordinary investors are interested in it. Curiously, a little earlier, Robert Kaplan, head of the Federal Reserve Bank of Dallas (FRB is part of the U.S. Federal Reserve), said that “Bitcoin is now clearly a value-saving tool.”
Analyst Joseph Young believes that there is another reason for the observed downward correction of bitcoin prices. In his opinion, it is the use of big leverages by traders with small amounts of money that is too risky and maybe the decrease in bitcoin price will reduce the desire to use this instrument in trading. In fact, bitcoin price-oriented positions were closed during the day for a total of $10 billion.
How are traders reacting to the current bitcoin situation? Investment expert Ryan Selkis admitted that while he doesn’t buy bitcoins every time they get cheaper, he doesn’t tend to sell them in such market situations.
