Bitcoin Struggles to Close $60K After Dropping Briefly Below It

There have been some heavy crypto price fluctuations in the past 24 hours, with Bitcoin taking the biggest punch. After hitting its all-time high last month, Bitcoin has surprisingly dropped in the last day. The lowest price point was just under $60K, sparking rumors about further price drops. Luckily, it recovered pretty fast, but since then, BTC has been unable to keep the $60,000 course.

After dropping to around $58,000, Bitcoin recovered quickly to just over $61,000. Another price drop followed, with the current trading price just under $60,000. Some investors saw the latest price drops as a great way to get back in the market, while others are concerned.

On the other hand, experts see it as a natural development that shouldn’t raise any red flags.

No Reason to Panic

Crypto experts aren’t concerned by the latest price drops at all. It’s a simple reminder of how volatile the market is and an example of how profit taking works. If you’re an investor, your memory probably isn’t that short. New investors, however, will likely be worried about the latest developments.

With Bitcoin seeing a meteoric rise in the past few months, some retracement was always going to happen. All-time highs are always followed by retracements that help coins grow even further. It’s a time-consuming process for sure, but keep in mind that crypto investments are profitable in the long run, not the short.

If you’re entered the market looking to make a quick buck, you may be disappointed. Price drops such as Bitcoin’s latest one may surprise many, but they are common, even if they extend further. Of course, other developments are also affecting the market. The US SEC has just rejected a proposed spot Bitcoin ETF citing market conditions as generally unfavorable at the moment. Excess leverage on the wrong side and derivative traders may have also influenced the price drop.

The good news is that it’s not likely to last for long.

Perfect Time to Dive Back into the Market

Traders and first-time investors should see the latest developments as a perfect time to dive back into the market. The price drops give investors a chance to put more money in their favorite coins which could potentially pay off big in the future. This is a game of investing and profit taking, and you shouldn’t consider it anything else.

According to some analysts, the latest price drops may be related to the recently signed US infrastructure bill. President Joe Biden’s signing of the bill has generated at lot of headlines in the cryptocurrency industry, supposedly for stricter regulation. There will certainly be some regulations for companies in this sector. Many are concerned by the legal language in the bill which define brokers in a much wider definition.

The spending bill was signed primarily to address and upgrade the US public works system. Unexpectedly, it also brought new rules for crypto brokers that are now required to report all transactions over $10,000 to the tax authorities.

The bill scares off potential investors, although some time should pass to see what kind of influence it has on the crypto market.

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