{"id":152223,"date":"2021-01-12T01:13:59","date_gmt":"2021-01-11T22:13:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoins-recent-correction-could-be-retail-driven-nexo-ceo-speculates\/"},"modified":"2021-01-12T01:13:59","modified_gmt":"2021-01-11T22:13:59","slug":"bitcoins-recent-correction-could-be-retail-driven-nexo-ceo-speculates","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoins-recent-correction-could-be-retail-driven-nexo-ceo-speculates\/","title":{"rendered":"# Bitcoin’s recent correction could be retail-driven, Nexo CEO speculates"},"content":{"rendered":"

“# Bitcoin’s recent correction could be retail-driven, Nexo CEO speculates <\/strong>”
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The price of Bitcoin (BTC) has dropped substantially since Jan. 8, totalling a decline of more than $10,000 at time of publication. Retail investors could be part of the rationale behind the drop, according to Nexo CEO Antoni Trenchev.\u00a0<\/p>\n

\u201cThe price correction we\u2019re seeing was brought about by retail investors following the lead of institutions that created the Bitcoin high,\u201d he told Cointelegraph on Jan. 11, adding:<\/p>\n

\u201cOnce BTC passed $40K, earnings were at a height that triggered smaller investors who are,\u00a0understandably, more prone to selling quickly. There has been a flurry of sell-off transactions in recent days – the BTC price drop is the result of an accumulation of these transactions.\u201d<\/p><\/blockquote>\n

After blazing past its 2017 record high near $20,000, Bitcoin quickly doubled, hitting almost $42,000 per coin by Jan. 8. In the days following, the digital asset fell<\/a> app<\/a>roximately 28%, down to almost $30,100. <\/p>\n

Price advances often come with pullbacks, although a retracement does not necessarily indicate the end of an overall macro bull market. So what would signal a macro Bitcoin top? <\/p>\n

\u201cThere are a few observable signs to watch for,”\u00a0Trenchev told Coitelegraph on Jan. 8. “Regulation, for example, has a powerful influence on the market,\u201d he noted. \u201cRegulatory activity that appears to tighten rules on crypto can dissuade new buyers.\u201d <\/p>\n

United States regulators have stepped up their engagement in the crypto space over the last few years \u2014 potentially the sign of a maturing industry. Several legal actions have recently come into the spotlight, including a proposal from the U.S. government aimed at tracking digital assets withdrawn from exchanges. <\/p>\n

\u201cThere is even potential for over-excitement on the upside to cause some level of crash, although I doubt it\u2019d be too big a concern,\u201d Trenchev said. \u201cEvery year since 2013 has seen a \u2018crash\u2019 of around 25% of a peak earlier in the same year, and yet here we are with BTC hitting heights it never has before,\u201d he added. \u201cCorrections like this are an inevitable aspect of market behaviour,\u201d he said on Jan. 8, referring to a smaller correction that occurred on that day. <\/p>\n

\u201cSo much is made of institutional involvement when it comes to bitcoin price movement, and rightly so \u2014 however retail activity is something to watch closely for signs the market has topped,\u201d Trenchev explained. \u201cMany will panic, take their profit, and walk away \u2014 which can have a domino effect on the rest of the market.\u201d <\/p>\n

The latter half of 2020 hosted a noteworthy amount of Bitcoin attention from mainstream giants, such as MicroStrategy and MassMutual, potentially making this bull run different from years prior.\u00a0<\/p>\n