If you've checked any of the crypto exchanges within the last 48 hours, you might have been a bit surprised. For the second straight day now, Bitcoin has been dealing with more than a 10% decline. Although this may seem like an insignificant number, it equals out to more than 100 billion being taken from the overall crypto market. At the time of writing, Bitcoin is sitting at just under $32,000 USD for the first time since January 11th.
This comes after Bitcoin hit an all-time high of just under $42,000 USD.
So, should you be worried? Depends on who you ask. Numerous individuals have argued that a correction like this was not only expected but needed. If we look at previous data on the bull run of 2017, more than 5 significant corrections were involved that were 30% or more. So, this was just normal then, correct?
Another significant aspect influencing the price drop in crypto is Janet Yellen, the U.S. Treasury Secretary, who made statements about cryptocurrencies being used for "Illicit financing." However, days before these statements, news reports showed that criminal activity in cryptocurrencies had decreased to 0.34% of the global world transaction volume ($10.0 billion). This is a significant improvement from 2019s numbers of 2.1% ($21 billion).
Despite these statements and corrections, institutional investor demand is at an all-time high for Bitcoin and doesn't look like it's stopping soon. This has not changed many bears who continue to argue that Bitcoin is just a bubble waiting to burst. Whatever your view may be, its clear to see that cryptocurrency is becoming more and more involved with the mainstream media and news again. Whatever happens, more updates will be added as made available.
