After flying all-time high and gaining so many investments and price growth, the major cryptocurrencies finally scared the entire investment community. On January 11, 2021, the entire crypto/investment community took a low blow when all the major cryptocurrencies saw a significant drop in their prices.
According to the analysts and crypto-data analyzing firms, the entire cryptocurrency industry faced an overall 20% drop in their prices on January 11, 2021. For Bitcoin (BTC) however, the situation had already become a bit clearer back on January 10, 2021. By the end of last week, Bitcoin (BTC) hit its all-time high of $41k per BTC, but on Sunday, its prices lost to the $40k per BTC benchmark.
Right from that point, Bitcoin’s (BTC) behavior had hinted that it was going to experience a significant drop to its value in the coming days. Right when Bitcoin (BTC) lost its $40k benchmark, the selling pressure for the cryptocurrency increased overnight. As a result of the selling pressure, Bitcoin (BTC) ended up experiencing its all-time low for the year 2021 and saw the price of $30,229.
However, after hitting the all-time low for the running year, Bitcoin (BTC) did manage to rebound to a soft figure. Thus, it started gaining the same level of trust and investments from the investors and financial institutions. As a result of the decline in the price of Bitcoin (BTC), it was reported that more than $2.7 billion worth of futures contracts were liquidated by the investors.
The above liquidation has been further proven by the historical data that has been collecting from the past few days. After running charts and trending lines on the liquidation data, it has become clear that the liquidation came amidst the drop in Bitcoin’s price from $40k to $32k per BTC.
As soon as the entire cryptocurrency industry, especially Bitcoin (BTC) started dropping in its price, some of the challenges of Bitcoin (BTC) took the opportunity to comment on it.
Mark Cuban, the Dallas Mavericks’ owner, who has been heard talking negatively about the crypto-industry also made a comment. As per Cuban, the cryptocurrency industry has proven to be identical to the internet stock boom that the entire world got to experience back in 1990.
He stated while looking at the price situation of the cryptocurrency industry, he cannot help but think about the internet stock bubble. However, it seems that Cuban has taken a U-turn from being a challenger to the cryptocurrency industry to being its proponent.
As per Cuban, the cryptocurrency industry is now showing the same trend as eBay and Amazon showed when they made it to the mainstream platform. He stated that no matter the drop Bitcoin, Ethereum, and other major cryptocurrencies may show, they will still experience a rise in their value.