Cryptocurrency Markets Head for Correction as Bitcoin Tumbles Below $50,000

Bitcoin has fallen below the $50,000 mark after a week of heavy losses, posting a 20% deficit and the its worst week since March.

Bitcoin is currently trading for $49,630, off a high of $64,000 just two weeks ago. Investors speculate that a massive crypto sell-off ($200 billion in value) was wiped off the board following President Biden’s plan to increase corporate taxes. 

Others speculate that Bitcoin, and other cryptocurrencies, could be heading for a big correction.

Investment manager at Guggeheim Partners Scott Minerd told CNBC that Bitcoin could fall as much as $30,000 in value, with other coins reeling from the sudden sell-off and likely taking a plunge as a result.

Ethereum is down below $2,300, and XRP, Binanace, Litecoin and countless other crypto tokens have taken a beating as a a result of Bitcoin’s crash. 

Minerd also noted that such crashes for Bitcoin have happened before, citing the 2017-2018 boom and subsequent crash that preceded the current bullish crypto market. In 2018, Bitcoin fell by almost 90%, with many convinced at the time that it would ultimately fail entirely.

Investors still remain largely confident on their Bitcoin investments, noting that support from large and well-established financial institutions was absent during crypto’s last crash and that it should make a difference this time around. Minerd in particular believes that Bitcoin could one day be worth over $400,000 in value.

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