- Bitcoin dived more than 10% to a weekly low of $11,163.
- Investors asked to take a step back and focus on longer timeframes.
The cryptocurrency market suffered at acute pullback on Wednesday and part of the trading sessions on Thursday. Bitcoin dived more than 10% to a weekly low of $11,163 marking a $2,000 pullback. The drop comes barely two weeks from the time Bitcoin hit an 18-month high around $13,800.
Tweeting about the declines, Tom Lee the founder of Fundstrat told investors to take a step back and put their focus on the bigger picture. He said that it is essential to focus on longer timeframes as bull markets do not come without pullbacks.
“Important to step back and focus on the bigger picture and long-term frames on #bitcoin
-painful $2k drop in past day, partially due to federalreserve Powell comments @facebook #Libra
– drop invisible on weekly timeframe
Crypto winter over”
Most analysts believe that the recent comments by the Fed’s chairman Jerome Powell regarding Facebook’s intended cryptocurrency Libra. Jerome said that Libra raises a lot of concerns; privacy and security of user data must be addressed among other things. He added yesterday that Libra will be a topic in the next week’s G7 ministers meeting. He also said that he is in talks with other central banks regarding Libra.
Bitcoin saw a boost towards $14,000 following the launch of Libra on June 18. The announcement was seen as validation not just for Bitcoin but also for the entire cryptocurrency industry. It also encourages other huge corporations to get involved with cryptocurrencies.
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