Heavy Correction in Bitcoin Prices, Slips over 30% to Below $13,000 In a Weeks Time Excerpt

The cryptocurrency market has finally undergone a bearish momentum and the strongest cryptocurrency - Bitcoin has corrected by more than 30% in less than a week time. After hitting an all-time high just below $20,000 past Sunday, Bitcoin price is seen moving sideways on a downward journey.

In the past 24 hours, the price of the Bitcoin has slipped below $13,000 with a huge trading volume in the market and the current market cap of the cryptocurrency at $240 billion. Earlier this week, the markets were going strong as a lot of euphoria was there surrounding the launch of CME’s Bitcoin futures contracts. Moreover, with even Ethereum climbing above the $850 mark, the overall cryptocurrency market valuations surged above $600 billion.

A lot of warning signals were raised by many independent as well as institutional analysts looking to the sudden surge in the market valuations. One of the major reasons for this slash in the Bitcoin price is its own derivative - Bitcoin Cash. After, the largest exchange in U.S. - Coinbase announced adding support to trade Bitcoin Cash, the price of the altcoin surged by 70% in a single day hitting a new record high above $3000.

Off lately, Bitcoin Cash is seen gaining a stronghold of the market as many investors are seen shifting their funds to this altcoin. The Bitcoin network is currently clogged up with huge investor participation which has taken the transaction costs high and reduced the transaction speeds. Bitcoin Cash was created with a hard fork in the Bitcoin blockchain, as an alternative to solve these issues as it offers higher block size.

At this point in time, investors should take a note that the valuation of Bitcoin along with other altcoins like Ethereum and Litecoin, has grown considerably over the past year. With a lot of investor participation seen over the past two months there has been a massive influx of funds in the crypto market. Probably, one can also see some correction in the market as seen now.

Moreover, there are few investors who don’t consider Bitcoin, and overall cryptocurrencies, as a sound investment option to due their highly volatile nature. But with many financial institutions realizing different Bitcoin-related investment products, a lot of legitimacy could be expected in the near time.