Trading | 4 months ago
Lately, Bitcoin investors are experiencing a shocking week as the market value of Bitcoin has declined by 100 billion dollars. Investors saw an intense selling in Bitcoin against the US dollar as the Bitcoin price fell below $48,000 on Friday.
After the first 15 days of bullish momentum in the month of April, Now Bitcoin has landed in a bear market territory. Today Bitcoin price fell by 1.5% till the morning session. Experiencing a major price correction, Bitcoin price fell by 11% in this week. Several factors have contributed to the heavy selling in Bitcoin over the past week. American president Joe Biden's new capital gains tax law is one of the primary factors.
Anticipated fear of increased regulation Imposed by some Asian and European countries in holding of Bitcoin and other major cryptocurrencies is also an important factor which contributed to the major dip in Bitcoin's price. Globally many governments and central banks are discussing the implementation of tax gains from cryptocurrencies or similar financial assets.
These major price corrections in Bitcoin help provide the entry of many institutional investors like JPMorgan, Goldman Sachs, and Morgan Stanley. The participation of these institutional investors adds credibility to Bitcoin as a financial asset. The long-term technical outlook for Bitcoin is still bullish. Therefore, one must look for buying opportunities in Bitcoin.
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