Bitcoin fell to its lowest price since February on Monday in what was the biggest price pullback of the latest bull run in the crypto markets.
Specifically, BTC hit a low of $42,212 during the Asian hours, after dropping around 35 percent from its record high of $64,880, which was reached in mid-April.
Commenting on this, Justin Chu, senior trader at the regulated digital asset investment manager Wave Financial, said a large pullback was inevitable.
“When combining fundamentals such as positive net inflows of bitcoin to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen.”
Meanwhile, Ethereum – the second most traded crypto in the world – also suffered a profound fall, approaching the $3,000 mark on Sunday after hitting an all-time high of $4,362.35 earlier in May.
Speaking last week, early crypto investor and innovator Nick Spanos said he is confident in Bitcoin’s long-term potential and said he believes Ethereum should be considered a riskier investment.
“ETH is a riskier investment with more volatility and competition. ETH is a global computer running smart contracts and DApps,” Spanos, co-founder of Zap Protocol, said.
“BTC does not have a direct competitor in the long run, it boasts the most hashing power and is the gold standard of trust.
“BTC isn’t trying to be a computer just as ETH is not trying to be money. Just look at the top market caps: it’s Bitcoin, and then a bunch of projects. Nobody owns or administers Bitcoin, it came from the wild and nobody can hack it.
“When decentralized finance through exchanges like PancakeSwap and Uniswap can interface with Bitcoin, and people can then swap permissionless between BTC and all these other tokens, it’s over. Bitcoin’s kingship will solidify even more.
“Investors have to consider the various layers at play. Ethereum and Binance chain serve as distinct platforms with adoption that grows even faster than their current scalability allows for.
“On top of that, you then have the reliance on oracles — from providers of real-world, smart-contract-triggering data — that make this all work for any project on any platform,” he concluded.