Bitcoin tanks 10% from its all-time high in less than a week: Time to buy or stay away?

Bitcoin experienced a sharp decline of over 10% in less than a week, dropping from its recent peak of over $73,000 to trade at $65,300 in early Sunday hours. At the time of writing this report the price was slightly up, trading at at $67,688.

This plunge marks a significant downturn in the cryptocurrency market, with other major tokens also witnessing losses.

Other cryptocurrencies also down

According to CoinDesk data, Ether fell by 6.43% to trade at $3,488, Binance Coin lost 8% of its value, settling at $564, and Solana experienced a 4.6% decrease, trading at $184.

What's driving the Bitcoin fall?

As per Mint, analysts attribute this recent downturn to profit-booking activities and the release of US inflation data. They also project potential further losses in the coming days, highlighting the volatile nature of cryptocurrencies.

Lack of buyers, cooling period

Alex Kuptsikevich, a senior market analyst, noted concerns about the availability of buyers at current price levels amidst profit booking. Other experts have also talked about the necessity of a cooling period for Bitcoin, considering its rapid rise.

Key event: Halving of Bitcoin

Meanwhile, Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, cautioned traders against leveraging due to the market's volatility. He also suggested that the upcoming halving of miner rewards on April 20 could trigger significant price shifts, reported Mint.

Bitcoin: The optimists

Despite the recent downturn, industry veterans remain optimistic about Bitcoin's long-term prospects. Nischal Shetty, Co-founder and President of Shardeum, as well as the Founder of WazirX spoke to Mint and highlighted the potential for Bitcoin to achieve mass adoption, envisioning a future where countries may be rated based on their Bitcoin reserves.

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