In brief
- The price of Bitcoin has risen above $38,000 again.
- The crypto lost nearly 25% on Monday, dropping from nearly $42,000 to around $32,000.
- It remains to be seen what Bitcoin's next move will be.
The price of Bitcoin (BTC) climbed back above $38,000 today after taking a historic daily dive of nearly 25% on January 11, according to crypto metrics platform CoinGecko. At press time, Bitcoin is trading at around $38,290, up 10% on the day.
As Decrypt reported, the cryptocurrency saw some massive ups and downs over the last seven days. Around January 8, Bitcoin reached its current all-time high, surging just shy of $42,000. However, BTCâs explosive growth was halted on Monday as its price plummeted to around $32,000, marking the biggest daily drop in history.
âThis Bitcoin price drop should not seem unusual to anybody who has been following the space since the 2017 boom,â Dmitrii Ushakov, chief commercial officer at BitRiver, told Decrypt at the time.
And he wasnât wrong. After somewhat stabilizing at $32,000 between January 11â12, Bitcoin showed its resilience and quickly began climbing back up.
Other experts asserted that such volatility is a healthy part of a bull market and allow traders to âregroup and catch their breathâ before continuing their business.
At the start of this week, other cryptocurrencies dropped alongside Bitcoin as well, pulling the global market capitalization of digital assets back below $1 trillionâjust days after they reached this milestone on January 7.
Today, the global market cap of cryptoâthe total number of all tokens in circulation multiplied by their current priceâamounts to $1.044 trillion, according to CoinGecko.
However, Bitcoin is still in a precarious position currently. On one hand, the situation might resemble early 2017 when the crypto suffered through multiple corrections on its way to the first historic all-time high of around $20,000.
Likewise, some parallels could be drawn with the end of 2017. Thus, $42,000 could be considered Bitcoinâs peak for the foreseeable futureâthe one that BTC is about to fall off. Could this be a bull trap?