Bitcoin fell sharply on Friday and is heading towards its biggest weekly decline since March last year, as technical and regulatory concerns prolonged its pullback from recent record highs.
During the Asian session, the world’s most popular cryptocurrency fell more than 5% to a low of 28,800 US dollars (approximately 2.1 million rupees) in the past three weeks, and then stabilized before 30,000 US dollars (approximately 21.8 crore rupees). So far this week, the index has fallen 15%, the biggest drop since the 33% drop in March.
Traders said that a report by BitMEX Research on Twitter suggested that a portion of Bitcoin may have been spent twice, which undermined confidence in the technology behind the asset class and was overdue after a sharp rebound.
Melbourne IG market analyst Kyle Rodda said after accepting the BitMEX report: “You don’t want to rationalize an inefficient and immature market like Bitcoin, but the momentum will definitely reverse.” “This group of people may have seen this and thought it sounds scary, now it’s time to sell.”
Bitcoin is now about 30% lower than the record high of $42,000 (approximately 30.6 million rupees) set two weeks ago. Due to increasing concerns that Bitcoin is one of the price bubbles in the financial market and the reason why cryptocurrencies have attracted the attention of regulators, Bitcoin fell.
At the U.S. Senate hearing on Tuesday, President Joe Biden (Janet Yellen), head of the U.S. Treasury Department, expressed concern that cryptocurrencies could be used to fund illegal activities.
Last week, European Central Bank President Christine Lagarde called for global regulation of Bitcoin.
However, some people said that the withdrawal of the asset was accompanied by the emergence of the territory, which was about 700% higher than the 2020 low of $3,850 (approximately Rs 280,000) reached in March.
“This is a highly volatile part,” said Michael McCarthy, a strategist at Sydney brokerage firm CMC Markets. “It has made extraordinary gains. It is doing what Bitcoin does and is swinging around. “
Ethereum, the second largest cryptocurrency, also fell to a one-week low of US$1,041.22 (approximately 75,950 rupees) before stabilizing to around US$1,144 (approximately 83,450 rupees).
Thomson Reuters 2021 ©