Following the massive Bull Run of Bitcoin in the last few weeks, many pundits have predicted a possible correction. Surprisingly, the digital gold has not shown any signs of slowing down. Instead, Bitcoin is pushing for new highs after breaking the $28,000 mark today.
Vijay Ayyar, head of business development with Luno’s Singaporean branch, is one of those that believe a bitcoin correction could be just around the corner. Speaking to Bloomberg, Ayyar noted that the market could be “close to a top.”
While he believes that the digital asset could sustain its current momentum until $30,000, he notes that Bitcoin could “definitely see a pullback, but the magnitude is probably lesser.” He suggested a pullback in the 10-15% range. Considering Bitcoin’s recent all-time high of $28,395, a 10% drop would result in a price of $25,555, and a 15% drop would result in a move to $24,135.
Ayyar’s prediction is coming despite the increase in demand for Bitcoin from institutional investors. These “large money” players are arguably behind Bitcoin’s recent rally. Another key trend that investors are speculating about is the potential entry of BlackRock into the crypto market. BlackRock is one of the world’s famous and leading asset managers. This speculation is born out of the firm’s recent search for a vice president of blockchain. Furthermore, one of the company’s exec recently admitted on TV that Bitcoin truly does have a future as an asset class.