During the ongoing month, Bitcoin has been on a roller-coaster price ride. During the mid-section of the month, the flagship digital currency hit an ATH of $64,500 following the Coinbase public listing. However, since then, it had been gone back to its support range of $50K to $60K. CryptoQuant is an over-ledger blockchain OS that provides interoperability between different blockchains. Ki Young Ju, CEO of the CryptoQuant, took to Twitter to express his views about the latest downtrend of BTC.
Young Ju believes that the Bitcoin market is only going through a technical correction phase due to the overleveraged longs, which is not likely to plague the crypto markets for a long period. He ruminated that the Bitcoin foundation is firm, well-planted, and unshakeable. The CEO also thinks that the clouds of doubt would be cleared from the BTC market in a matter of a few weeks. His remarks are in line with the claims of many financial analysts who attribute the recent drop down of the top coin to whale activities.
Bitcoin Market has Sustained Several Jabs in the Ongoing Month
Almost everyone is talking about the tax plans of U.S. president Joe Biden. The possibility of passing a rich tax law has created a massive uproar in the upper echelon of America. Strong stocks like S&P 500 and Dow have been depreciated as well as other major US stocks. The cryptocurrency market sustained a gut-punching loss of $300 billion from the markets. Bitcoin alone moved to a low position of $48K for the first time in three years.
Even though the leading coin has been restored to $50K since then, it seems that the crypto market is struggling to get out of the recent slump. All major altcoins have followed suit and went down at an average of 10 percent overall market corrections. Many people are certain that the law would face difficulties in getting approval in the Senate. However, it seems that major positions have already been arranged to make it happen.
Possibility of Bitcoin Market Correction
Some economists and investors like Ray Dalio, Peter Brandt, and others have been preparing the crypto enthusiasts for a possible government crackdown. The crypto market is not under danger from the policies of the current administration only. The effects of the mishaps of the last presidential policies are also starting to brew up storms near the crypto seashores.
POTUS, under Trump’s influence, managed to declare economic war on Turkey. As a result, Turkish president, Tayyip Erdogan, imposed a nationwide ban on cryptocurrency trading. In the aftermath of this ban, the crypto market started to travel from the $62K to $54K correction route.