Bitcoin plunges more than 20% in three days. It’s now in a bear market
Bitcoin slid as much as 21% over Sunday and Monday, its biggest two-day decline since March following pressures from investor risk aversion as traders took profits on the spectacular rally in light of a stronger dollar and growing political uncertainty.
Despite the fall, Bitcoin is still up a lot over the past few months, not to mention from where it was trading just a few weeks ago.
The drop highlights how the stunning rise has raised alarm bells among some on Wall Street. Analysts are of the opinion that the drop in the past few days is a “healthy correction” that has been due for a while now.
Many investors who are bullish (who go long) on bitcoin remain optimistic about the future of cryptocurrencies, citing the fact that digital payment giants like Square and PayPal let users buy and sell it. Also, many top institutional investors including Paul Tudor Jones, Stanley Druckenmiller and Anthony Scaramucci are still investing in it.
Thus, “the grass is definitely greener on the other side” for this cryptocurrency.
