Bitcoin sold heavily in Monday trading as the famous volatile cryptocurrency returned after a spectacular rally.
The biggest intraday retreat since March saw prices rise by 17%, erasing the gains made over the weekend. After a parabolic of 2020, the digital currency had started the new year with a bang, reaching a high of $ 34,000 and an all-time high.
Never in the crypto world, it is difficult to pinpoint the anticipated cause for the latest bout of volatility. Still, bitcoin is up more than 300% from the previous year, driven by the belief of retail and institutional investors that cryptocurrency is emerging as a mainstream asset class and can act as a repository of value.
Believers in bitcoin have pointed to market supply disruptions and large-scale money printing by central banks, allegedly as key drivers of the narrative. Others say that there is a bubble in creating cryptocurrency and another sign that global markets risk taking insane risks.
As of 10:41 am in London, bitcoin was down 13% to $ 29,168.
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