One week ago, bitcoin reached a new all-time high of nearly $ 67,000. But in the meantime, investors have given up the world’s most valuable cryptocurrency in favor of a new digital asset, Shiba Inu, according to CNN, Mediafax reports.
The price of a bitcoin is 11% below last week’s record levels. For any other asset, such as a stock or a bond, a decrease of such magnitude would be described as a correction.
But in the case of bitcoin, the evolution is as normal as possible, as investors have already become accustomed to the volatility of the currency.
Despite more than 13,000 cryptocurrencies listed on CoinMarketCap – from Dogecoin and Shiba Inu to obscure assets such as Elon’s Marvin, Dogelon Mars, Baby Floki Billionaire and Kitty Inu – Bitcoin remains the most valuable digital currency in the world.
The total number of Bitcoins in circulation has a capitalization of 1.1 trillion dollars, almost half of the entire crypto market, valued at 2.470 billion dollars.
Ethereum, the second most valuable cryptocurrency, reaches a capitalization of 475 billion. And the other virtual currencies lag far behind Bitcoin and Ether.
Most likely, the situation will not change in the near future, noting in this regard the emergence of exchange traded funds (ETFs) with exposure to Bitcoin. The ProShares Bitcoin Strategy ETF debuted last week on the New York capital market, followed shortly by the Valkyrie Bitcoin Strategy ETF.
The ProShares Fund already manages $ 1.2 billion in assets. In fact, the popularity of funds with exposure to Bitcoin, which monitors futures contracts and does not give investors the opportunity to directly own the currency, could increasingly fuel the price of Bitcoin.
Some experts in the crypto industry argue that the price of a Bitcoin could reach $ 100,000 by the end of the year or the beginning of 2022, the asset enjoying the support of top investors, such as Paul Tudor Jones and George Soros.
But there are signs that some traders are tired of trading Bitcoin or other cryptocurrencies. The price of an asset cannot rise significantly indefinitely. And, taking into account the declines of the last week, Bitcoin has a yield of over 100% since the beginning of the year.
The brokerage platform Robinhood said that “activity in the crypto market has decreased compared to the highs of Q2 / 2021, and revenues in Q3 are similar to those of the previous quarter.”
Corrections and so-called bear markets are inevitable, and the decline in recent days could only be the beginning.
“We expect Bitcoin to reach $ 100,000 – but not this year, as we estimate that volatility will continue into early 2022,” said Gavin Smith, CEO of Panxora, a cryptocurrency investment consortium. “Bitcoin is still an emerging asset class that is highly volatile, and investors should approach it with caution.”
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