CoinShares Development Director Meltem Demirors described the recent drop in bitcoin as a normal market correction that weeds out panic-prone traders.
After bitcoin’s April high trying to cross the $ 65,000 mark, novice traders may be worried about the current decline. Demirors is convinced that after 200 days of the rise in the cryptocurrency market, its subsequent fall is quite normal, since the price of any asset cannot constantly go up.
The market is now correcting. Investors who cannot withstand the high financial risks start selling bitcoin as soon as its price starts to fall. However, most long-term investors continue to hold it, even though it fell below $ 29,000 on June 22nd. Bitcoin quickly recovered and is now trading around $ 34,000.
“Bitcoin has always been a volatile asset. I would not be surprised if it returns to $ 20,000. In March last year, 1 BTC was worth only $ 3,000. One should always take into account its volatility, ”Demirors said.
She added that looking at the activity on the network, long-term investors continue to wait and benefit from the market decline for further savings. The Hodlers have significantly increased their bitcoin holdings since it began to roll back from its April records.
Demirors expects Bitcoin to continue holding at its current level for a long time, as there is great uncertainty about the future actions of the regulators. In addition, media headlines are “full of negativity” about bitcoin and cryptocurrencies, which also puts pressure on the market, Demirors said. She previously stated that bitcoin should not be called “digital gold” as it has nothing to do with precious metals.
Meanwhile, by
data market research firm Skew, Q2 2021 was the worst period for Bitcoin since the start of the bearish trend in 2018.
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