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Bitcoin drops after climbing to all-time high


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Bitcoin drops after climbing to all-time high

By Tom Wilson and Gertrude Chavez-Dreyfuss

 

2021-02-22T101731Z_1_LYNXMPEH1L0G8_RTROPTP_4_CRYPTO-CURRENCY-BITCOIN.JPG

FILE PHOTO: Representation of the virtual currency Bitcoin is seen on a motherboard in this picture illustration taken April 24, 2020. REUTERS/Dado Ruvic/Illustration

 

NEW YORK/LONDON (Reuters) - Bitcoin fell on Monday after surging to its latest record high a day earlier as a sell-off in global equities curbed risk appetite, with some investors also citing concerns about the rapid rise in the price of the virtual currency.

 

The most popular cryptocurrency fell to $47,400, a one-week low. At one point, it lost nearly 17% of its value, or about $160 billion of its total market capitalization.

 

Bitcoin recouped some of the losses later in the trading session and was last down around 5.5% at $54,322, on track for its worst day since Jan 27. Its market cap was just under $1 trillion on Monday.

 

"Fairly standard after a rise this large to see a pullback. The usual dislocation of markets was seen," said Charles Hayter, chief executive officer of crypto data provider CryptoCompare in London.

 

Traders also pointed to the unwinding of highly leveraged long positions in the cryptocurrency.

 

Bitcoin, which rallied on Sunday to a peak of $58,354, was still up more than 80% this year. Since hitting a low in March below $4,000, bitcoin has surged nearly 1,200%.

 

Tesla Inc boss Elon Musk, whose tweets on bitcoin have added fuel to the cryptocurrency's rally, said on Saturday the price of bitcoin and rival cryptocurrency ethereum seemed high.

 

U.S. Treasury Secretary Janet Yellen also tamped down the flames on Monday, saying bitcoin is extremely inefficient at conducting transactions and is a highly speculative asset.

 

"The selloff across the board this week is a result of some of last week's exuberance easing, as well as a much-needed unwinding of over-leveraged long positions," said Ross Middleton, co-founder of cryptocurrency exchange DeversiFi.

 

Ethereum, which tends to move in tandem with bitcoin, also tumbled after hitting a record high on Saturday. It hit a three-week low on Monday and was last down about 8.2% at $1,774.

 

Trading platform IG said on Monday it had reached its limit for the amount of cryptocurrency it holds as a business and that it was no longer accepting new cryptocurrency buy orders from clients.

 

Bitcoin's meteoric rise has been fuelled by signs that it is gaining acceptance among mainstream investors and companies, from Tesla and Mastercard Inc to BNY Mellon.

 

"We do tend to think that there's a good chance of a down week and small correction coming in off of this, although it does little to dull medium-term prospects," said Joseph Edwards of Enigma Securities, a cryptocurrency brokerage in London.

 

BNY Mellon is working with Fireblocks in conjunction with a new unit it announced earlier this month to help clients hold, transfer and issue digital assets, according to a report on Monday by CoinDesk.

 

(Reporting by Gertrude Chavez-Dreyfuss in New York and Tom Wilson in London; additional reporting by Karen Pierog in Chicago and Muvija M and Shubham Kalia in Bengaluru; Editing by Andrew Cawthorne and Sonya Hepinstall)

 

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-- © Copyright Reuters 2021-02-23
 
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I suspect there will be a new all time high of $60k this week some time    

An entire article that can be summed up in three words: Bitcoin is volatile. Every rise is followed by a fallback but it doesn't matter as long as the floor keeps steadily rising, week after week.

Will it be worth $500,000 in 2030 or $1,000, if the latter I won't feel too bad.  

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31 minutes ago, jesimps said:

I missed that buy opportunity at around 47k, I was watching some rubbish on the box.


Maybe set buy orders. In my experience, those deep dips are fleeting. I suspect most of the successful purchases are buy orders rather than humans who notice and manage to submit their order at exactly the right moment.
 

35 minutes ago, jesimps said:

I expect another one will come along in the not to distant future, although investing for the long term it hardly matters.


Yes. On balance, once you have decided that the fundamental arguments for Bitcoins rise are solid, and that it makes greater sense for the coming year than fiat or other assets, the important thing is to get in there. The question of whether you hold back in hope of a better price is a separate gamble. I don't think I have ever got my timing quite right, but it has always worked out okay in the end.

 

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5 minutes ago, 4MyEgo said:

Will it be worth $500,000 in 2030 or $1,000, if the latter I won't feel too bad.


I would be pretty surprised if, by 2030, it only reached 500k.

I'm guessing 60k by the end of this month, 200k by the end of this year. I then expect the economic consequences of unprecedented money-printing to manifest even more severely in 2022, so, 500k by the end of that tumultuous year or, at least, the first half of this decade isn't so far fetched.

 

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2 minutes ago, donnacha said:


I would be pretty surprised if, by 2030, it only reached 500k.

I'm guessing 60k by the end of this month, 200k by the end of this year. I then expect the economic consequences of unprecedented money-printing to manifest even more severely in 2022, so, 500k by the end of that tumultuous year or, at least, the first half of this decade isn't so far fetched.

 

 

So I buy one Bitcoin for $50k and in 10 months it's worth 4 times that, too easy, where have I been ?

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1 minute ago, 4MyEgo said:

 

So I buy one Bitcoin for $50k and in 10 months it's worth 4 times that, too easy, where have I been ?


Like the rest of us, you have been in 2020, watching the world being turned upside down, and every government printing money like crazy to keep the whole damn game afloat.

4 times is nothing. If you bought Bitcoin 10 months ago, your money would now have multiplied by 10 times.

 

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1 minute ago, donnacha said:


Like the rest of us, you have been in 2020, watching the world being turned upside down, and every government printing money like crazy to keep the whole damn game afloat.

4 times is nothing. If you bought Bitcoin 10 months ago, your money would now have multiplied by 10 times.

 

 

It's the volatility that gets me, can't watch something swing high and low as this does, although it would be nice to park $50k and just leave it there and have a look in a year or two.

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1 minute ago, donnacha said:

You probably already know, but I'll just mention this for anyone who might be unsure. There is no need to buy an entire Bitcoin for 50k, you can buy as little or as much Bitcoin as you want.

 

No I didn't know that, thanks

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31 minutes ago, 4MyEgo said:

 

No I didn't know that, thanks

 

you can buy $100 if you want. up to you na. 

 

but not today.....and don't even look at the price action today either. not cool. 

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50 minutes ago, 4MyEgo said:

 

So I buy one Bitcoin for $50k and in 10 months it's worth 4 times that, too easy, where have I been ?

Yeah, I think there was something abt partying like crazy in Hua Hin? Drinks on the house -wasn't it?

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