Bitcoin plunges to $30k due to which crypto market cap fell by more than $200 billion. Not only Bitcoin, other cryptocurrencies have also seen this correction including some altcoins as well. Most of the altcoin’s price declined by more than 20% on January 11, 2020 as Bitcoin faces a huge drop.
As Bitcoin plunges to $30k, analysts have claimed that this should be seen as a healthy price correction for Bitcoin. Alex Mashinsky, CEO of Celsius, has hinted that Bitcoin might fall to $16,000 level, before regaining its position.
$2.7B in Futures Contracts Liquidated as Bitcoin Plunges to $30K
After Bitcoin plunges to $30K, it has been seen that around $2.7 billion worth of futures contracts had been liquidated. Some have also claimed that the crypto market is showing the exact signs which were there in the internet stock bubble during the 1990s. Mark Cuban, owner of Dallas Mavericks, has said:
“Watching the cryptos trade, it’s exactly like the internet stock bubble.”
It is not only the crypto market that has seen this downturn as the traditional financial sector had also gone through this kind of pressure on Monday, January 11, 2020. S&P 50, NASDAQ, and Dow Jones closed with red marks on Monday.
Healthy Correction by Smart Institutions
There are a lot of bears who have criticised Bitcoin to a great extent. Still, bitcoiners are not losing their faith. David Lifchitz, CIO at ExoAlpha, has said that this downfall could be seen as a healthy correction by smart institutions that are buying Bitcoin. He believes that this correction will lead Bitcoin to $50k and above. Even though Bitcoin plunges to $30K, all the predictions are in favour of this historic bull run that Bitcoin has been going through and it is believed that this bull run will continue further as well.