According to a Bloomberg article, Fundstrat Global Advisors' David Grider believes that Bitcoin's recent pullback is healthy and doesn't mean the rally is over.
Bitcoin stabilizing after the pullback
After the world's flagship cryptocurrency declined 20% from January 10-11, Bitcoin has now stabilized and is changing hands at the $ 35,000 level.
Several factors were noted that are likely to add fuel to the correction fire: several major liquidations ($ 410 million in Bitcoin futures on Binance; $ 2.4 billion in total, based on data provided by the Bybt service), as well as the announcement of the Kingdom United. regulator FCA on the high risks of investing in cryptocurrencies for retail users.
In addition, the main British bank HSBC has refused to provide services to cryptocurrency-oriented companies.
Before this reversal, Bitcoin had hit several all-time highs in a row: As of January 2, it broke above the $ 30,000 level. It then surpassed $ 39,000 on January 7 and surpassed $ 42,000 (the last ATH) on January 8.
Fundstrat's leading digital strategist David Grider has stated that this correction is healthy and that BTC has not reached the cap.
"We think a pullback is healthy for the price."
"Bitcoin's 900% advance since 2018 has overshadowed everything else in the last 50 years"
According to Bloomberg, Bitcoin's rise from lows it hit in 2018 has totaled 900%. It has overshadowed the boom cycles of all other assets for the past 50 years, the article states, including gold, the traditional store of value.
Gold rose from $ 200 per ounce to over $ 800 in the late 1970s, then surpassed $ 1,800 in 2012. Last year, the precious metal rebounded from a correction, but was only able to climb slightly above $ 2,000.
The Nikkei 225 peak in the 1980s and the Nasdaq surge in the 1990s are also on this list.