What happened and whyBitcoin slumped 14% in a day after hitting all-time highs, in a fresh blow to the crypto-philes backing the latest rally to be built sustainable foundations.📉 The latest 'correction' in the price, saw the US dollar exchange-rate slip to $16,334, just a day after nearly touching $20,000. The cryptocurrency kingpin has risen +54% in the past 3 months and +140% since 2020 kicked off. Which might sound a little familiar...?In 2017... The currency enjoyed a similar boom climbing from below $1,000 to nearly $20,000 in the space of 12 months.The following year... and its first close encounter with the $20,000 threshold was followed by a 32% drop that wiped billions off the currency's market capitalisation.While the market is gaining in maturity and welcoming a greater proportion of longer-term currency holders that should in theory bring less volatility, it is a market swayed by behavioural economics, more than most...💸 Taking profit... Traders are reportedly taking profits at record highs prompting rapid FOMO within the crypto-community.🛡️ Regulators... Predictions that more stringent regulations are in the pipeline in America, which could make Bitcoin less accessible. Bitcoin backers and crypto-philes claim to be welcoming a rapid growth of professional investors into the market, with the currency being considered a more mainstream risk asset day-by-day. Undoubtedly, banks are seeing greater interest from institutional clients when it comes to Bitcoin's place in a portfolio but these are still nascent days when it comes to its place in a mainsteam portfolio.| The TakeawayThis year's bitcoin gains have brought deeper pockets to the market. With investors seeing bitcoin gleaming a little brighter, with the sharpening of monetary policy (interest rate cuts) and among some, the cryptocurrency has gained the alias of gold's digital brother - as a hedge against the gaining narrative of an impending inflation boom that would leave economies in a very nasty hole.
