Bitcoin again tanks after posting the biggest weekly gain in three months

Analysts say it is just a normal pullback after an episode of a bullish run

  • Other digital currencies have fallen 3-8 % in the previous 24 hours
  • Bitcoin is still up 14 % in the last month and up 38 % year to date
  • Binance to phase out its futures and derivatives business in Europe

Bitcoin is once again red after climbing to attain the highest levels in the weekend since May. On Monday, Bitcoin fell below $40,000 and traded $39,790 as of 11:25 a.m. in Hong Kong. The bearish sentiments were infectious, and they rubbed on other crypto assets as well. 

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The largest cryptocurrency fell as much as 4.9%, and other virtual coins, including second-ranked Ether, also fell. However, Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, said that this is just a normal pullback after an episode of a bullish run. 

As per data  the number one crypto token by market capitalization has tanked almost 4% to $39,748.5. Ether, the ethereum blockchain network’s token, also sank to $2,560, while dogecoin fell nearly 3% to $0.20. Other digital currencies, including Stellar, XRP, Litecoin, and Uniswap, have lost 3-8 % in the previous 24 hours.

The previous two weeks had seen the number one crypto coin surge. It also broke the top limit of the long-running trading range of $30,000 to $40,000. On Saturday, bitcoin reached $42,390, the cryptocurrency’s highest level since May 20.

The decline once again puts Bitcoin back to the $30,000 to $40,000 trading range that’s been in place since a cryptocurrency rout in May. The token had surged unbelievably to $60,000 before the May carnage, which left the most significant crypto coin at 50% of its former value. Even though Bitcoin has fallen from its all-time high of $65,000 in April still, it is up 14 % in the last month and up 38 % year to date.

Supportive comments have helped crypto tokens.

However, in recent weeks, the crypto token has been helped by supportive comments from billionaire Elon Musk and Ark Investment Management LLC’s Cathie Wood, as well as speculation over Amazon.com Inc.’s possible involvement in the cryptocurrency sector. In addition, there were rumors that Amazon will accept crypto coins as a legal tender. However, the rumors were unfounded and have also been quashed by Amazon.

It is not a period of peace for Bitcoin and the cryptocurrency sector as a whole. Scrutiny of the cryptocurrency industry is increasing, and U.S. legislators are pushing through a bill that seeks to tax profits obtained from cryptocurrency trade. 

The planned $550 billion investment into transportation and power systems under the bipartisan infrastructure bill is slowly making its way through the U.S. legislature. The bill also includes a provision to raise $28 billion from crypto investors.

Crypto traders are also eagerly awaiting a software upgrade for the Ethereum ecosystem. The upgrade is expected to boost the price of the crypto coin by slimming the token’s supply.

Hounded by regulatory pressure, Binance to reduce its product offering

Major Cryptocurrency exchange Binance has announced that it would phase out its futures and derivatives business in Europe. Binance has been hounded by regulatory pressure around the globe, and the latest step by the platform is touted to reduce its product offerin

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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