This Bitcoin Pullback Is Healthy: Fundstrat's Lead Digital Strategist

u.today 2021-01-13 19:50
Reading time: ~2 m

According to a Bloomberg article, David Grider from Fundstrat Global Advisors believes that the current Bitcoin pullback is healthy and does not mean that the rally is over.

Bitcoin steadying after the pullback

After the world's flagship cryptocurrency printed a 20 percent decline on Jan. 10-11, Bitcoin has now steadied and is changing hands at the $35,100 level.

Several factors were noticed that are likely to add fuel to the fire of the correction: several major liquidations ($410 million in Bitcoin futures on Binance; $2.4 billion total, as per data provided by the Bybt service), as well as the announcement by U.K. regulator FCA about the high risks of investing in crypto for retail users.

Also, major British bank HSBC has refused to service crypto-oriented companies.

Prior to this rollback, Bitcoin had taken several all-time highs in succession: starting from Jan. 2, it topped the $30,000 level. Then it surpassed $39,000 on Jan. 7 and breached $42,000 (the latest ATH) on Jan. 8.

The lead digital strategist at Fundstrat, David Grider, has stated that this correction is a healthy one and that BTC has not topped out.

We think a pullback is healthy.

"Bitcoin's 900 percent advance since 2018 has dwarfed everything else in past 50 years"

According to Bloomberg, the Bitcoin surge since the lows it reached in 2018 has totaled 900 percent. It has dwarfed the boom cycles of all other assets over the past 50 years, the article states, including gold, the traditional store of value.

Gold surged from $200 per ounce to above $800 in the late 1970s, and then it went above $1,800 in 2012. Last year, the precious metal recovered from a correction but was able to surge only slightly above $2,000.

The Nikkei 225's spike in the 1980s and the surge of Nasdaq in the 1990s are also on this list.