Bitcoin Pulls Back Monday After Surge

Today's plunge can be attributed to weakened institutional demand, funding stress, and chart-driven factors.
Anthony RussoFeb 15,2021,17:09

After getting some love on Valentine's Day and in the past week or so, Bitcoin slipped 2% intraday Monday to $47,895.2.

On Sunday, Bitcoin hit an all-time high of $49,716, data from industry website CoinDesk shows.

The cryptocurrency started rallying last week after electric vehicle giant Tesla (Nasdaq: TSLA) bought $1.5 billion worth of Bitcoin. In addition, credit-card giant Mastercard (NYSE: MA) and Bank of New York Mellon (NYSE: BK) announced that they were making it easier for customers to use cryptocurrencies.

Now, however, investors pull back. CoinDesk attributes the BTC plunge today to weakened institutional demand, funding stress, and chart-driven factors.

“We're probably entering (I think) a brief and minor correction now, but we're still in the midst of a violent bull run that will soon be more violent,” Ari Paul, the CIO and founder of BlockTower Capital, tweeted.

He added “Bear markets are brutal, but bull markets can be just as tough in other ways. Seeing random people suddenly 30x their money in scamcoins (or maybe quality that you missed) is rough. Trying to keep up with the constant flood of news and opportunity is exhausting.”

Since Feb. 7, Bitcoin has surged 23%. I expect the pullback to continue in the short-term.

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Topics:Bitcoin, Tesla, Mastercard, New York Mellon.