How Does This Week’s Bitcoin Drop Differ From That of 2017?
How does this week’s Bitcoin drop differ from that of 2017? Should the recent decline worry the investors?
Bitcoin (BTC), the leading unit of the cryptocurrency market, has dropped from around $ 40,000 to $ 31,000 this week. Following this decline, Bitcoin investors began to investigate whether this decline was a repeat of the decline in 2017.
The Bitcoin (BTC) price, which rose to $ 42,000 last week, dropped to $ 31,000 at the beginning of this week. While debate continues over whether the drop in 2017 repeats itself, leading analysts in the cryptocurrency market share the idea that this rally is different from the others.
Why Is This Rally Different From 2017?
Investors say that Bitcoin’s rally this year is different from what happened in 2017, that institutions see Bitcoin as a method of protection against inflation. Especially during the coronavirus epidemic, the policies of the FED and the US government increased the fear of inflation, directed institutions to Bitcoin. Regarding institutional investors’ fear of inflation, Nigel Green said:
“Emergency measures such as the colossal coin printing devalue traditional currencies such as the US dollar and increase the threat of inflation.”
Apollo Capital Investment Manager, Henrik Andersson, shares the view that Bitcoin is seen as a hedge against inflation. Andersson likens Bitcoin to gold in terms of its ‘safe haven’ position and says that Bitcoin’s performance is extremely attractive.
Institutional Investors Excite Individual Investors
DeVere CEO Nigel Green states that large corporate companies stepping into the cryptocurrency market has whetted the appetite of individual investors.
“Retail interest is growing as some of the world’s largest institutions – multinational payment companies, Wall Street giants – hide cryptocurrencies and bring their enormous expertise and capital to the cryptocurrency industry.”