Bitcoin has seen a lot of positive expectations lately including banks, though, the coin has started correcting over the past several days.
Bitcoin Sees Price Correction Despite Bullish Expectations
Bitcoin has seen massive amounts of positive expectations lately including banks and well-known investors, though, the coin has started correcting over the past several days, and is currently trading above $53,000. That this is just a temporary drop.
The leading cryptocurrency has been making very positive moves and news for weeks, which drove its price up to $60,000. It reached that level twice in the last week. In fact, no asset can rise indefinitely without an occasional correction.
Positive developments for the bitcoin currency in the recent period
as we mentioned before, Bitcoin is on the rise Significantly in positive developments lately, it acquired three ETFs in Canada and one in Brazil, and there were hints that even the US might finally be willing to consider giving ETF approval before VanEck's proposal. In recognition of the banks too, after years of criticism JPMorgan finally decided to start offering crypto services.
Even big Wall Street like “Jordan Belfort” changed his stance on Bitcoin, he recently admitted that he may have taken the wrong position on it.
Balfour wasn't the only one. Veteran investor Peter Brandt recently came out with his highly optimistic predictions, claiming that he expects Bitcoin to reach $200,000 in 2021, even as Federal Reserve Chairman Jerome Powell himself said he believes the cryptocurrency It could become an alternative to gold. He has noted that he does not see cryptocurrencies replacing the US dollar, however, he cautioned that they are highly volatile, but he still finds use for cryptocurrencies rather than publicly ignoring, rejecting or trying to ban them.
Reasons for the current decline of the leading digital currency
But despite the positive news, Bitcoin has seen a major price correction over the past few days, and some reports have warned that this could happen, and it seems they were right, given that the entire market is trading in the red.
One report stated that there has been a steady decline in appetite among investors since the February price hike, with no money flowing into the currency, and it was only a matter of time before its price started to struggle.
Another reason for the price drop is that the massive bitcoin options worth about $6 billion are due to expire on Friday, March 26, meanwhile, the exchange desk at the Singapore-based Delta Exchange said there is a higher build-up in open interest on shorts than in bids. As options remain more comfortable selling the downside rather than helping to the upside, with that in mind, the current drop may just be preparing for an estimated $6 billion earthquake to come in a matter of days.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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