The euphoria in the cryptocurrency market was quelled on Jan.11 as the majority of altcoins saw their prices decline by more than 20% as Bitcoin price sold off sharply.
After falling below the $40,000 support level on Jan. 10, selling pressure for Bitcoin (BTC) increased overnight and pushed the price of the top cryptocurrency as low as $30,229 before a soft support level was reached.
The rapid decline in price led to more than $2.7 billion worth of futures contracts being liquidated and the long candles on the Bitcoin price chart show that the cascade of liquidations occurred quickly as the price dropped from $41,000 to $32,229.
Dallas Mavericks owner Mark Cuban used the market downturn as no opportunity to point out that the cryptocurrency market is identical to the internet stock bubble from the 1990s.
Cuban said that “Watching the cryptos trade, it’s exaclty like the internet stock bubble,” but he added that Bitcoin, Ether, and “a few others” will likely follow the path of Amazon and eBay and continue to see their valuations rise.
Those with a little more skin in the game, such as Celsius CEO Alex Mashinsky, view the recent drop as a healthy price correction and Mashinsky hinted that there is a possibility of BTC dropping as low as $16,000 before resuming its upward trek.
Traditional markets feel the pressure
The traditional financial sector also found itself under pressure on Monday as the political situation in the United States continues to generate tension and uncertainty about the future of the country and the economy.
The S&P 500, Dow, and the NASDAQ all finished the day in the red, down 0.66%, 0.29%, and 1.55% respectively as big-tech and the FAANG stocks hit their lowest levels since Nov. 26.
Analysts say the market was due for a correction
Nearly every time BTC price falls by thousands of dollars, bears, doomers and nocoiners emerge from the netherscape to issue calls for the death of…