18:22Crypto market cap falls by $113B as Bitcoin price tumbles to $28,750
After a day of intensifying sell pressure, Bitcoin price dropped below $29,000 for the first time since January 5.
On Jan. 21 the cryptocurrency market experienced an increased wave of selling pressure and within the last hour Bitcoin (BTC) price dropped below the $30,000 mark for the first time since Jan. 4.
BTC/USDT 4-hour chart. Source: TradingView
As reported by Cointelegraph, Scott Minerd, the Guggenheim’s chief investment officer, recently suggested that the price of Bitcoin has “likely put in a top” for 2021 and could see a “retracement back toward the 20,000 level.”
JPMorgan strategists John Normand and Federico Manicardi also warned that investors using BTC “as a portfolio diversifier are putting themselves at risk” as Bitcoin is more of a cyclical asset than a hedge.
This note of caution seems to have been well timed given today’s show of volatility. Although sell-offs can be painful for investors who are overleverged, taking a closer look at some of the social activity that occurred during the downside move hints that the current volatility might not be a macro trend change.
BTC price vs. market cap dominance. Source: TheTIE
BTC price vs. daily sentiment score. Source: TheTIE
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