Bitcoin slides below $54,000, lower by 4% on the day
Bitcoin couldn’t sustain the selling pressures after it breached the latest milestone of $60,000 per single bitcoin. The solid rally to the all-time high turned into a correction as losses accelerated and exceeded 10%. The largest coin by market value is now down 13% from its all-time peak of $61,700 made on Saturday.
On Sunday, Bitcoin couldn’t break the barrier, it could only keep the gains for a short while before the market decided it’s time to cash out the gains. On Monday, price retreated strongly to the downside and bitcoin closed modestly above $56,000. Today, the losses continue to extend further as bitcoin is now trading below $54,000, lower by over 4% on the day.
The recent pullback, however, is nothing new for crypto investors who are used to the digital token’s volatility and unpredictable swings both to the upside and to the downside. The rally over the past year still remains above 1,000% and crypto players are determined to hold the asset, certain in its ability to pick itself up and continue marching higher.
The current drop could be attributed to a few factors and developments unfolding this week. The market expects to hear the latest economic outlook in a press conference by US Federal Reserve Chairman Jerome Powell. He will speak on Wednesday and deliver his remarks on inflation fears, rising borrowing costs and the prospects for recovery underpinned by the approved $1.9tn fiscal stimulus. The big-ticket spending includes $1,400 checks per individual earning below $75,000. According to a recent survey, a significant part of these checks could flow into the cryptocurrency market.
Bitcoin’s market share has slipped below 61% as a sign that bitcoin’s capitalization is flowing over to other cryptocurrencies, also called altcoins or alternative coins. The total market capitalization of the crypto space has dropped to $1.65tn, down from over $1.70tn on Monday.