After Bitcoin (BTC) formed its first red candle on Jan. 18, the cryptocurrency’s two-week winning streak came to an end. BTC was on track to match or even surpass its record of 15 positive price days in a row set in November 2013, the longest such streak in the cryptocurrency’s history. Although the record was not broken, some Twitter commentators said that Bitcoin had the longest winning streak since the record was set in 2013.
According to data from Cointelegraph, Bitcoin was back under $21,000, a level it hadn’t reached since the bankruptcy of crypto exchange FTX in early November of last year, and it was close to a loss of 2.4 percent throughout the day. An ominous announcement made earlier on January 18 by the United States Department of Justice (DOJ) that it would “announce an international cryptocurrency enforcement action” appeared to be the primary cause of the negative price action.
It turned out that the action was taken against a little-known Hong Kong-based exchange called Bitzlato with ties to Russia. Many people speculated that it could be against a major exchange or crypto company. Anatoly Legkodymov, the founder of the exchange, was also detained.
Bitcoin Going Down In Valuation
The BTC price fell from an all-time high of more than $41,000 to a two-week low of approximately $20,800 as a result of the DOJ investigation and subsequent arrest. Many traders remain hopeful that Bitcoin will soon recover and continue its long-term bull run despite the setback.
One cryptocurrency analyst asserts that the BTC price drop is only a passing blip and does not necessarily indicate a bearish market trend. Before the price resumes its upward trend, the most recent reverse is probably just a brief correction.
Overall, the sudden end of the two-week winning streak for Bitcoin serves as a reminder that, despite the cryptocurrency’s bullish long-term outlook, it can experience short-term volatility. This means that traders need to keep an eye on things and avoid getting too caught up in short-term market movements.