Earlier this week saw almost all altcoins record a 20% decline as Bitcoin (BTC) slipped below the $ 40,000 support level on Sunday.
Indirectly, the decline pushed the BTC selling pressure until the price plunged to a low of $ 30,468 at midnight last night local time.
The depreciation of BTC also caused more than 2.7 billion futures contracts to be liquidated rapidly.
Celsius CEO Alex Mashinsky sees the BTC price decline as a healthy price correction and expects the Bitcoin depreciation to reach $ 16,000 before soaring.
Just like Mashinsky, ExoAlpha's Chief Information Officer (CIO), David Lifchitz explained that the ongoing withdrawal was due to a healthy correction by institutions that bought BTC at $ 20,000 up to $ 30,000.
According to him, what is worrying is not the rising BTC price but the speed of the cryptocurrency cycle.
"From mid to late December 2020, the average amplitude of daily movement in Bitcoin has doubled to 8.1%, then almost doubled from 1 to 10 January 2021 to 15.3%.
"The larger the amplitude, the more exchanges take place throughout the day between buyers and sellers. This correction will clear up excess growth, enabling Bitcoin to reach $ 50,000 and above. ” said Mashinsky.
At the time of writing BTC was trading at $ 33,976 and Ethereum (ETH) was trading at $ 1,057.
