Bitcoin ended Thursday down 13%, posting its largest daily drop since the market crash of March 2020.
- The leading cryptocurrency's drop is "probably just a dip," according to Techemy Capital trader Josh Olszewicz, who is not expecting a prolonged correction.
- Bloomberg analyst Mike McGlone agreed, telling CoinDesk he could see bitcoin "probing for support and resistance within a mostly $30,000 to $40,000 range for awhile until embarking on the next leg of the stair-step rally."
- But Guggenheim's CIO Scott Minerd thinks bitcoin maybe have topped temporarily, saying that a retrace to $20,000 is possible.
- Significant selling over the past week on U.S.-based exchange Coinbase signals profit-taking by investors, per CoinDesk's prior reporting, after bitcoin nearly tapped $42,000 earlier in January.
- Leading alternate cryptocurrencies (altcoins) like ether and chainlink also recorded double-digit percentage losses.
- Thursday's drop helped erase most of bitcoin's yearly gains, with the cryptocurrency now up only 6% in 2021.