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The price of bitcoin fell to almost 50 per cent of its all-time high on Sunday after China announced yet another crackdown on crypto mining.
Ethereum (ether), Cardano (ada), dogecoin and other major cryptocurrencies also took a hit, though remain significantly up compared to the start of 2021.
A market rebound on Monday took bitcoin from below $32,000 to above $36,000, partly assisted by comments from Elon Musk that he preferred cryptocurrencies to traditional fiat currencies.
The technology billionaire, who has been both thanked and blamed for his market-moving tweets in recent weeks and months, also engaged in an indirect debate with ethereum co-founder Vitalik Buterin, claiming “he fears the Doge”.
A number of prominent analysts remain optimistic about bitcoin’s prospects and the direction of the market in general. Figures from blockchain data firm Glassnode reveal that user growth continues to double roughly every year, leading some to speculate that the bull market is “just warming up”.
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1621847543Bitcoin bull run ‘just warming up’
A number of prominent crypto analysts have stood by previous price predictions for 2021, claiming that the latest dip is not the end of the market rally.
The pseudonymous Dutch analyst PlanB – best known for his stock-to-flow price prediction model – tweeted on Sunday evening that he expects bitcoin to “bounce back” over the coming days and weeks. The forecast was followed by a 20 per cent jump.
Meanwhile on-chain analyst Willy Woo cited data from blockchain data firm Glassnode on Monday morning in arguing that “the bull market is very much intact”.
“A key to reading this chart is to know that BTC user count has roughly doubled every year since inception a dozen years ago,” he wrote. “So the 2021 peak is expected to end at levels MUCH higher than the 2017 peak. Under this trend, we are just warming up.”
Anthony Cuthbertson24 May 2021 10:12
1621845539Bitcoin price bounces back after weekend turmoil
Bitcoin has rebounded on Monday morning after plummeting in price over the weekend.
The latest fall was prompted once again by news out of China, with several top mining operators suspending their operations in the country.
Bitcoin reached below $32,000 – roughly half the all-time high it saw in April – but has since bounced back by roughly 20 per cent to $37,000.
You can read more about China’s latest crackdown, which follows on from last week’s separate crypto transaction ban, right here:
Anthony Cuthbertson24 May 2021 09:38
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