Top 10 cryptocurrencies drop 10%, Bitcoin drops below US$47,000, Ethereum falls to US$1,355
According to Coingeko, Bitcoin dropped 20% from US$58,341 to US$45,917, leading to a 10% pullback in the top 10 cryptocurrencies by market value. Bitcoin Cash(BCH) represented an 25% drop over 24 hours, followed by Chainlink(LINK) and Binance Coin (BNB).
U.S. Treasury Secretary Janet Yellen described Bitcoin as “ highly speculative assets” , which is “extremely inefficient for transactions” in an interview yesterday. Nevertheless, Bill Gates, the founder of Microsoft, changes his stand on Bitcoin in the latest interview with Bloomberg after Bitcoin fell, saying that “I am not bullish on Bitcoin“, showing a distinct attitude compared with last Thursday.
So should we give up our cryptocurrencies?
Payment giants, including PayPal, Visa and Mastercard, have proposed their plan to support cryptocurrency payment at their merchants; Tesla and Lamborghini also enable customers to pay with crypto, for example BTC, ETH, etc. Apart from the examples listed above, Bitcoin Cash Map and Green.Pages show over 2,000 merchants in the world support crypto payment to purchase goods and services. So, it may not be correct to say that “Bitcoin is extremely inefficient for transactions.”
While looking at the 25% pullback is worrying, the market had experienced the similar correction in early January. Bitcoin dropped almost 30% in 8 January to 22 January, from US$41,000 to the lowest at US$28,850. According to TideBit, the RSI in BTC/HKD daily chart suggested that Bitcoin has been “overbought” for nearly a month. However, the RSI returned to the normal range, as of press time, thus it is believed that Bitcoin is under a healthy correction as last time, which investors should put their focus on the long term development of bitcoin, not limited to other cryptocurrencies.