Bitcoin (BTC) has experienced a 4.4% decline,
reaching $39,900 per coin this week, while Ethereum (ETH) prices dropped by
9.5% to $2,240. On Tuesday, BTC prices went even lower, down 7.8% to $38,546,
the lowest since December 1, and ETH losses reached 12.4%, with prices falling
to $2,167, the lowest since January 8.
This correction in the crypto market does not
appear to have clear, immediate reasons, and it may be a result of
profit-taking by investors who accumulated long positions during the strong
spot Bitcoin-ETF-driven rally. ProShares Bitcoin Strategy ETF (BITO) reported a
$50.2 million capital outflow last week, marking the largest weekly loss since
the beginning of 2023. Deutsche Bank Research found that many retail investors
are skeptical about Bitcoin, with over a third of respondents in a survey
expecting BTC to fall below $20,000 by January 2025.
There's also a noted negative sentiment
reflected in the downgrade of Coinbase stock (COIN) by JPMorgan analysts to
"underweight." They cited declining BTC prices and the introduction
of spot Bitcoin ETFs as factors contributing to the pessimism. JPMorgan analysts
anticipate COIN stocks to decline to $80 in the next 12 months, implying a
potential 35% loss by January 2025. The overall negative sentiment is impacting
the crypto market, with Bitcoin retesting the resistance at $40,000. If it
fails to recover above this level, it may continue down towards $35,000 per
coin. Investors should
brace themselves in hopes for a future recovery.
Meanwhile,
internet pastor Eli Regalado from Colorado made another stunning contribution
to crypto market scam logbook. State’s securities regulator accused him
and his wife in fraudulent schemes with its own INDX coin for $3.2 million. He promised
those tied to his online church that they would earn a 10x return by buying it.
Naturally, over 300 people who invested in INDX got no return, but lost their
money. Regalado spent most of it to refurbish its own house and to buy some
luxury items. He has already became a meme crypto villain after he posted a video
responding to allegations explaining, “several hundred thousand went to a home
remodel the Lord told us to do.” “It was last October [2021] that the
Lord brought this cryptocurrency to me. He said, ‘Take this to my people for a
wealth transfer,’” Regalado explained. “God is going to work a miracle
in the financial sector," he preached while continuing to convince
people that the INDX mess will work itself out.