Bitcoin bulls were celebrating its surge past $40,000 when the inevitable happened.

After reaching all-time high after all-time high, Bitcoin’s price was in dire need of a correction.

“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to setback,” tweeted Scott Minerd, global chief investment officer at investment giant Guggenheim Partners, at about 5am UTC on Monday morning, as Bitcoin’s price began to fall.

He wasn’t wrong.

Over the last 24 hours, Bitcoin’s price fell $9,000, hitting a low of $32,000. At one point, its price fell $3,000 in under two hours. This extreme price volatility upturned a lot of futures traders, liquidating $1.1 billion in long positions. And in real dollar terms, today’s losses represent the biggest Bitcoin crash ever. But what caused this sudden downturn? And what will happen next?

A sudden market correction
Price corrections have simply been part and parcel of bull runs in the past, and today’s price action is no different.

“This Bitcoin price drop should not seem unusual to anybody who has been following the space since the 2017 boom,” Dmitrii Ushakov, chief commercial officer at BitRiver, told Decrypt.

During 2017’s Christmas bull run, Bitcoin reached what was then an all-time high. On the way, we saw dips similar to what has happened today. For example, between November 9, 2017 and November 13, 2017, Bitcoin’s price dropped 20% between $7,459 and $5,950.

Jason Deane, Bitcoin analyst at Quantum Economics, told Decrypt that price corrections are “a healthy part of a bull market and allow traders to regroup and catch their breath before embarking on new price discovery,”

Deane added that, “In times of emotionally fuelled trading, like the 2017/18 boom, these corrections can be large and unpredictable.”

But knowing that price corrections happen hasn’t stopped some Bitcoin holders from selling their assets.

Small investors selling their Bitcoin
Despite many in the crypto industry calling for calm, Bitcoin’s decreasing price has led to small holders selling off their Bitcoin.

This can be explained, in part, by small holders searching for short-term profit, or cutting their losses before witnessing what they might expect to be an even greater market crash.

“Profit-taking once Bitcoin passed $40,000 triggered small investors who are, understandably, more prone to panic (and excitement) and resort to selling faster,” Antoni Trenchev, co-founder and managing partner of Nexo, told Decrypt.

Kain Warick, founder at derivatives liquidity protocol Synthetix, addressed those who might be looking to sell their Bitcoin for fear of a greater price drop in the near future.

While smaller Bitcoin holders might be more prone to react to the market, those holding large amounts of Bitcoin are more willing to hold on to their assets in the long term.

The Grayscale fund temporarily stopped onboarding new investors before the new year.


Digital asset investment company Grayscale has re-opened its doors to new investors for the majority of its digital asset trusts.

The Grayscale Bitcoin Trust applies periodic pauses on new investors. On December 21, the fund put a pause on new investors. It's significant because the fund is one of the few places where institutional investors in the US are able to get exposure to Bitcoin. During this time, however, existing investors were still able to buy shares in the trust.

Investing in the Grayscale Bitcoin Trust requires a six-month lock up period. In other words, new investors cannot sell their shares on the secondary market for the first six months.

As of yesterday, the Grayscale Bitcoin Trust held about $20 billion in assets under management.

The Grayscale Bitcoin Trust is not the only investment product on offer. Grayscale also provides investment opportunities for other major cryptocurrencies, including Ethereum and Litecoin.

At the time of writing, the Grayscale Ethereum Trust—which is yet to reopen—and the Grayscale Litecoin Trust hold $3 billion and $158 million in assets under management respectively.

Yesterday, Bitcoin dropped to $30,000 from a high of $41,000. But today, Bitcoin’s price appears to have levelled out to about $35,000, after recovering from lows of $30,000.

Messaging app Telegram has seen a massive surge in new users, largely by those concerned about their privacy.



Messaging app Telegram has seen an additional 25 million new users sign up to use the platform in the last 72 hours, according to Telegram CEO Pavel Durov. The app, which is widely used by many in the cryptocurrency space, doesn't share personal data and offers encrypted chats.

The influx of new users appears to be a result of rival messaging app WhatsApp changing its privacy policy. This update required its users to share their data with Facebook, or stop using the service. This prompted concerns from users that they will be sharing more data with Facebook than they are comfortable with. And many decided to leave.

“In the first week of January, Telegram surpassed 500 million monthly active users,” said Pavel Durov, CEO of Telegram, in his personal Telegram channel, adding, “After that it kept growing: 25 million new users joined Telegram in the last 72 hours alone.”

As Decrypt reported, the move away from WhatsApp helped push Signal to the top of the app stores. Although this was helped by a big endorsement from Elon Musk, who simply tweeted "Use Signal."

These new users are spread out across all parts of the world, with the majority—38%—coming from Asia. A further 27% and 21% have come from Europe and Latin America respectively. A final 8% have come from the MENA region.

“We’ve had surges of downloads before, throughout our 7-year history of protecting user privacy. But this time is different,” Durov added. The Telegram CEO also went on to say that individuals no longer want to trade their privacy for free services.

Telegram made an attempt to get further into the cryptocurrency world when it tried to launch its own cryptocurrency, called TON. However, the SEC prevented it from occuring, forcing Telegram to return $1.2 billion to investors and pay a penalty of $18.5 million to the SEC.

Hal Finney was the first-ever recipient of Bitcoin—a historic event that proved the network did work in reality.


Today marks the twelfth anniversary of the first-ever Bitcoin transaction sent from one person to another. At the receiving end was computer scientist Hal Finney, who got the 10 Bitcoin from Satoshi Nakamoto, the network’s mysterious, pseudonymous creator.

The transaction on the now-historic date proved that Bitcoin—as a money network—did indeed work in reality and set the foundation for its future growth. It came a week after Nakamoto started running the Bitcoin network on their computing system.

Apart from receiving the first Bitcoin transaction, Finney, known for his work in advanced cryptography systems before succumbing to a rare disease in 2014, was also the second person to run Bitcoin. Some even conspire that he was Nakamoto—a theory that does the rounds even today.

“I mined block 70-something, and I was the recipient of the first bitcoin transaction when Satoshi sent ten coins to me as a test,” Finney wrote in a Bitcointalk forum post in 2009. The amount was worth next to nothing at the time, but at today’s market prices, it is worth over $353,000.

Finney was also one of the first individuals to put out a price prediction on Bitcoin. He estimated in a mail (which was initially lost but later recovered) to Nakamoto in 2009 that extrapolated the total worldwide household wealth—considering it to be between $100-300 trillion—with Bitcoin’s 21 million supply: Giving each coin a value of $10 million.

And as if those firsts weren’t enough, Finney also holds the distinction of making the first-ever tweet referring to Bitcoin. It just said, “running bitcoin,” and twelve years on, the network’s still going strong.

The business intelligence giant is hosting a free online course on Bitcoin. But can it convince the corporations?


Business intelligence firm MicroStrategy is offering a free, online course in Bitcoin strategy on February 3 and 4, 2021.

The firm was one of the first to put large amounts of Bitcoin on its balance sheet and may have partially triggered Bitcoin’s latest rally. Other firms have also done so, with Square putting $50 million into Bitcoin. But can MicroStrategy convince even more companies to follow suit?

“On February 3 and 4, MicroStrategy will host Bitcoin for Corporations,” tweeted MicroStrategy CEO Michael Saylor today.

MicroStrategy propelled itself into the Bitcoin world when it announced a combined investment of $425 million in Bitcoin between August and September 2020. After additional Bitcoin purchases and an increase in Bitcon’s price, MicroStrategy now holds about $2.3 billion worth of Bitcoin.

The first day focuses on how Bitcoin can be adopted by corporations. “Our first day agenda provides a concise yet comprehensive overview of the topics corporations need to address as they develop and implement their Bitcoin strategy,” MicroStrategy said.

On this first day, Saylor will give two talks himself. One on Bitcoin Macro Strategy, which will offer a review of Bitcoin as a treasure reserve asset, as well as address macroeconomic factors driving Bitcoin’s institutional adoption.

The second talk will be on Bitcoin Corporate Strategy, which will review the ways in which corporations can integrate with Bitcoin. Other talks due to feature on both days include topics such as financial and legal considerations about Bitcoin.

On the second day, MicroStrategy will provide an “overview of strategic vendors and offerings in the Bitcoin marketplace.” On this day, several presentations will be given by major cryptocurrency companies like Binance, Coinbase and Fidelity.

But the question is, will Elon Musk be attending?

Bitcoin (BTC) is becoming a challenger to gold’s standing as the one supra-currency, the thing to own when fiat currencies are kerplunked, Jonathan Ruffer, Chairman of UK-based Ruffer Investment Company, said, explaining their underlying reasoning for investing in BTC.


"We have done much work on assessing the danger that bitcoin is a wrong’un. We have been watching it for a longish time, and our judgement is that it is a unique beast as an emerging store of value, blending some of the benefits of technology and gold," Ruffer said in his latest Investment Review. As reported, the company invested GBP 550m (USD 748m), or around 2.5% of its assets in BTC.



The Chairman admitted that BTC "is a seemingly non-sensical asset,"

"But one that makes absolute sense for how we see the world," he added.



This is how he described the current investment environment:

"We see inflation – biggish inflation – ahead."

"The world’s currencies are in danger of being compromised by the issuance of more money."

"The growth companies – too big, too dominant – are unlikely to be able to grow their profits fast enough to compensate for what will happen when long-term yields rise – their ratings will fall as investors become less willing to pay such high multiples for the future earnings."

Meanwhile, an important question for the company was when to invest in BTC.


"We took the view that last November was not too soon, and if we left it any longer, subsequent price performance might make it feel too late. So we made an allocation," the Chairman said.


According to him, at the time of writing, the entry price looks to have been favourable, "but that’s not really the point."


"We are in the business of keeping clients safe, and we are nervously satisfied that bitcoin has a small part to play in the pudding," Ruffer concluded.


At pixel time (12:43 PM UTC), BTC trades at USD 35,192 and is up by almost 1% in a day and 11% in a week. It rallied by 85% in a month and 340% in a year.