Bitcoin fell more than five percent on Tuesday, and December marked weakness for the world’s largest cryptocurrency. Tuesday’s drop sent bitcoin’s value below $48,000, which is a 29 percent drop from its peak in November.
The world’s second largest cryptocurrency, ether, also fell above five percent on Tuesday.
says Matt Malley, strategist at US brokerage Miller Tabak + Co Bloomberg said it was strange to see such a sell-off of cryptocurrencies near the end of the year. He notes that many cryptocurrencies have been big winners in 2021 despite the somewhat turbulent development recently. He says institutional investors will likely be behind this fall.
Malley goes on to say that many of these institutional investors may have “come late to the party” and thus have missed out on much of the rally in cryptocurrencies this year.
– Their return in cryptocurrency is not very large. In fact, many of them are likely to suffer losses. Therefore, more people may reduce their exposure somewhat, and instead increase their exposure in other asset classes, such as stocks, Malley says, according to Bloomberg.
Vijay Ayyar, head of business development at cryptocurrency exchange Luno in Singapore, told Bloomberg that the drop is not particularly concerning for bitcoin.
There’s nothing to worry about right now, says Avear, according to Bloomberg.
He adds that the cryptocurrency exchange has a “bullish” view of bitcoin as long as the values are close to the $48,000-49,000 range.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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