Monthly change: BTCUSD -4.46%
After skyrocketing to 42,000 USD in early 2021, Bitcoin experienced a 29% drop on 11 January amid profit-taking by its holders. The behaviour of the first cryptocurrency in January is vague, as many traders were expecting continued growth, most of them, as can be seen from the charts, are trying to take profits with sharp jumps.
Higher volatility is caused by conflicting information. Despite the heads of the ECB and the U.S. Treasury Secretary's statements, it is necessary to introduce control over the cryptocurrency market soon due to fears that criminal schemes are taking place, as all investors purchase all bitcoins when it drops. From a technical point of view, the 30,000 USD level looks strong. According to Coindesk.com, many university funds place their assets in cryptocurrency, citing sources. They claim that through the crypto exchange, Coinbase, and other platforms, Harvard, Yale, Brown, and Michigan Universities have invested in Bitcoin. A source told the publisher that some of the funds could have opened accounts on the exchange 18 months ago.
However, even though institutional investors have started to invest in Bitcoin, many analysts believe that there is not enough money supply for new jumps of the cryptocurrency to the level of 50,000 USD and above in the near future.
Much depends on the implementation of additional stimulus measures in the United States and the reaction of the world's fiscal authorities to the first cryptocurrency's sharp growth. We may see increased volatility with this asset in the near term.
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