August 13, 2022

Bitcoin’s recent correction could be retail-driven, Nexo CEO speculates

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The price of Bitcoin (BTC) has dropped substantially since Jan. 8, totalling a decline of more than $10,000 at time of publication. Retail investors could be part of the rationale behind the drop, according to Nexo CEO Antoni Trenchev. 

“The price correction we’re seeing was brought about by retail investors following the lead of institutions that created the Bitcoin high,” he told Cointelegraph on Jan. 11, adding:

“Once BTC passed $40K, earnings were at a height that triggered smaller investors who are, understandably, more prone to selling quickly. There has been a flurry of sell-off transactions in recent days – the BTC price drop is the result of an accumulation of these transactions.”

After blazing past its 2017 record high near $20,000, Bitcoin quickly doubled, hitting almost $42,000 per coin by Jan. 8. In the days following, the digital asset fell approximately 28%, down to almost $30,100.

Price advances often come with pullbacks, although a retracement does not necessarily indicate the end of an overall macro bull market. So what would signal a macro Bitcoin top?

“There are a few observable signs to watch for,” Trenchev told Coitelegraph on Jan. 8. “Regulation, for example, has a powerful influence on the market,” he noted.Title: Bitcoin’s recent correction could be retail-driven, Nexo CEO speculates
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Published Date: Mon, 11 Jan 2021 22:13:59 +0000