The price of Bitcoin has dipped from the high of more than $47,700 to $43,030 on January 1, 2021. The bad news for crypto investors is that the prices of several other popular cryptocurrencies such as Ethereum, Cardano, Solana, and Binance also appear to slump.
The diminishing prices of all these digital currencies have lowered retail crypto investors’ celebration moods. At the same time, the falling prices in the crypto market are not something new and have not taken the crypto enthusiasts by surprise.
After reaching a price level of about $48,500, the price of Bitcoin started to decline. Its price dipped below the $47,500 and $47,000 levels. On January 3, the crypto coin’s value started recovering and traded close to $47,000. However, on the flip side, the initial support is close to the $46,500 zone. Also, the key support is close to $45,500 below which there could be a threat of a larger dip.
The price of Ethereum began to see a fresh increase and went above the level of $3,700 and reached $3,800. The coin’s next major hurdle is close to $3,850 and its price might accelerate higher above this.
Although retail investors have been hesitant on the crypto asset, many institutional investors have started increasing their stake in these alternative currencies. The CEO of Hedonova, Alexander Cavendish, came up with a possible reason for the current slump in the prices of major cryptocurrencies. He said it could be attributed due to the rotation of money from the hands of retail investors to institutional investors.
In recent times, the market dominance of Bitcoin has continued to reduce and is at the lowest level at present in many years. The last time it had a major dip in the market dominance was around four years ago, when it reduced to just 33 percent.