Bitcoin had been doing really well in the market for the past 3 months but it seems that it came with a rocky start to 2021 as the price of the cryptocurrency plummeted by around $5,000 in a single that – the biggest price drop in Bitcoin history according to sources.
Bitcoin recently reached an all-time high of $29,000 and continued to climb to a staggering $34,000 on Sunday before crashing drastically to below $29,000. This is the biggest crash in a single day as the currency has never lost more than $4,000 in a few hours before.
Most stocks around the world usually post a high during the first month of every year which was also seen on the first day of 2021 owing to the “January” effect. It means that stocks generally tend to do better in the first month of the year. Bitcoin on the other hand crashed significantly. The cryptocurrency has since then recovered and is being traded at around $30,000.
The co-founder of blockchain however isn’t worried about the crash of the currency as he says, “With bitcoin having broken $30,000, I think it’s very likely that the asset will eventually pass $100,000 per coin.” The gains by investing in Bitcoin seem to be far greater than any other asset as the price of the currency has continued to rapidly increase in the previous months and is expected to reach even greater heights in the coming years.
Image Source: Forbes