The protracted price correction of the crypto-asset market ended about a week ago, and since then, major coins have accumulated resources for further growth. And by the end of the week, digital assets were able to overcome psychological barriers and set new historical records. However, this did not go smoothly at all.
A few days ago, bitcoin finally broke through the $61,000 mark, but after that, it began to rapidly fall in price. Over the past three days, cryptocurrency quotes have dipped by 14%, and now the main digital asset is holding positions in the area of a local minimum of $53,200. On March 15, amid the fall in the value of bitcoin, traders lost more than $2 billion. The largest user loss was $19 million. Crypto exchange users suffered significant losses due to the fact that they were betting on the further growth of bitcoin quotes.
First of all, the sharp decline in the price of bitcoin is associated with the news that the Indian authorities are preparing to ban the use of cryptocurrencies and introduce criminal liability for its storage and production. The negative information background aggravated the rate of decline in the quotes of the main crypto-asset. Also, the cryptocurrency market has not shown steady growth in the last week, sagging in indicators, which also affected investor sentiment.
Having reached the $61,000 mark, bitcoin did not have enough interest from large investors and a margin of safety to stay at the psychological boundary of $60,000. This scenario is quite justified because the current growth and conditions of bitcoin show that the asset is not ready to continue its active growth. This reduces its investment attractiveness, which affects the cryptocurrency quotes. Negative news about the ban on cryptocurrencies only worsened the situation and brought down the Bitcoin indicators even more. Despite this, as of 10:00 UTC, bitcoin's margin of safety allows the asset to stably hold positions at $55,000, which may indicate further growth.
However, to continue more confident growth, the main crypto asset will have to fall below $50,000 to attract more attention from institutional investors. With this development of events, the investment component of the growth of quotes for bitcoin will allow the asset to reach the mark of $60,000. It is at this point that the main crypto asset needs to gain a foothold to continue its growth and set a new record.
The fall in bitcoin quotes after reaching another record was expected, but sudden negative news significantly exacerbated the situation. With the current development of events, without the intervention of force majeure, the price of the main crypto asset may drop even lower to increase investment interest from large companies. After that, Bitcoin will try to stay in safe positions around $60,000 to create a springboard for further growth.
