Bitcoin after massive gains on January 11, 2021 witnesses the worst slump to the tune of 19%, dropping the largest crypto to levels of $30699. And this is infact the worst drop even since the Covid 19 led rout seen in March 2020.
And with the losses in Bitcoin and other cryptos that move in tandem with bitcoin, a total of $200 billion has been wiped off from the crypto market. And as per a Bloomberg on sustenance of such losses, this will mark the biggest single day loss ever since March.
Now, this fall comes in the backdrop of gaining dollar as any rise interest rates in the US will mar the attractiveness of other investments that do not yield any income such as gold and bitcoin.
In the past week, bitcoin on heightened institutional buying jumped to a record high of $42000 per unit and forced some of the investment banks warning of an impending bubble in the digital currency. BofA said last week the world's popular cryptocurrency "blows the doors off prior bubbles", such as the dotcom boom, China in the 2000s and gold in the 1970s.
Contrary to BofA belief, JP Morgan said if bitcoin substitutes gold as a safe haven asset it could rise to $146000.