David Grider, digital strategist at Fundstrat Global Advisors LLC, thinks the current Bitcoin pullback is healthy and the rally is not over.
After a 20 percent drop by the world’s largest cryptocurrency on January 10-11, Bitcoin has now calmed down and is trading at $ 35,100.
It is thought that there are several catalysts that can affect the fix. For example, several major liquidations ($ 410 million in Bitcoin futures at Binance, $ 2.4 billion, according to data provided by the Bybt service), as well as a report by the UK regulator FCA about the high risks of investing in crypto for retail users.
Also, the major British bank HSBC has refused to provide services to crypto-focused companies.
Before the last drop, Bitcoin had hit an all-time high many times in a row, starting on January 2, when it hit the $ 30,000 mark and then surpassed $ 39,000 on January 7.
Fundstrat’s leading digital strategist, David Grider, stated that this correction is healthy and BTC is not yet on top.
“WE THINK THAT WITHDRAWAL IS HEALTHY.”
In addition, Bitcoin growth has reached 900 percent since its lowest level in 2018, according to the news source Bloomberg. In the last fifty years, the crazy bullish cycles of all other assets, including the traditional store of value gold, have become trivial alongside Bitcoin.
Gold rose from $ 200 an ounce to over $ 800 in the late 1970s, and then to over $ 1,800 in 2012. Last year, the precious metal recovered from a correction, but was able to reach just over $ 2,000. Nikkei, on the other hand, includes the rise of the 225’s in the 1980s and the rise of the Nasdaq in the 1990s.
Some investors are also worried about these drastic moves of Bitcoin. For this reason, “Overtaken the previous balloons.” The following question was raised in Friday’s note by BofA strategists, who are called: Is Bitcoin the biggest of all bubbles?