As Bitcoin has lost almost 20% in less than two weeks, it looks like extreme volatility remains a hallmark of crypto investing.
But, it’s largely business as usual with bullish conviction intact in the bitcoin market. whereas in traditional markets moves on this scale are met with alarm. The largest cryptocurrency edged higher after earlier slipping as much as 3.4% to $55,663 on 19th Nov.2021.
Some analysts say a sharp pullback is normal after prices skyrocketed 40% in October. China’s crypto crackdown and new U.S. tax-reporting provisions that are being viewed as unfriendly to crypto investors have also soured sentiment.
“During 2016/17 Bitcoin winter, the thing that really took the wind out of the sails of crypto was when interest rates rose and liquidity was draining from the system,” said a financial expert.
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