The world-famous Bitcoin is back again with another dramatic showdown of a swelling bubble that continues to get punctured, despite experts predicting the digital currency to grow during the early months of 2021.
Even though investor sentiment overlooks the move as a ‘consolidation instead of capitulation’, cryptocurrencies across the board turned red today, with almost all currencies losing big. Globally, crypto-assets broke even at a 6 percent deficit, taking the market cap below $950 billion.
As per emerging trends of the digital game, a report in Forbes suggests that as much as $4 billion in bitcoin options is expected to evaporate as early as 29th January 2021.
In principle, bitcoin options are contracts that allow investors or companies to purchase or sell crypto-cash within an allocated period. In this regard, options worth 107,000 bitcoin worth $ 3.5 billion will expire on Friday this week, a stark increase compared to the previous low of $2.4 billion recorded in December.
Trending data suggests the fervor of early January has dramatically changed, with bearish sentiments felt across the digital trade block. Here’s today’s breakdown of each cryptocurrency that’s been feeling a little under the weather lately:
Bitcoin’s massive rally over the last few months, climbing more than 250 percent since October last year, is threatening to drown other digital currencies that depend on its extremely volatile nature.
Meanwhile, experts at Wall Street giant, JP Morgan, warn investors that the digital game is a bad bet as an investment asset. A bitcoin exodus is imminent unless the market cap reclaims its $40,000 valuation sooner rather than never, ever again.