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Bitcoin slides more than 5% after topping $40,000 for first time

Published 08/01/2021, 02:51
Updated 08/01/2021, 03:45
© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are seen in this picture illustration

By Kevin Buckland

TOKYO (Reuters) - Bitcoin fell more than 5% on Friday, a day after topping $40,000 for the first time.

The world's most popular digital currency slid to as low as $36,618.36 on Bitstamp exchange, after reaching an all-time high of $40,402.46 in the previous session.

Rival cryptocurrency ethereum sank more than 10% to as low as $1,064.89.

Bitcoin has rallied more than 700% since a low in March. It topped $30,000 for the first time on Jan. 2, after surpassing $20,000 on Dec. 16.

Market participants had warned of a correction after the $40,000 milestone was reached.

Increased demand from institutional, corporate, and more recently retail investors has powered bitcoin's surge, attracted by the prospect of quick gains in a world of ultra-low yields and negative interest rates.

JPMorgan (NYSE:JPM) strategists wrote on Jan. 5 that the digital currency has emerged as a rival to gold and could trade as high as $146,000 if it becomes established as a safe-haven asset.

 

Latest comments

I'm too scared to put my savings in something that so obviously looks like a bubble. Tempted to buy gold and silver miners because at least they are businesses. Their dividend case particularly.
Pro Fessor, I'm not sure what your point is? I'm up 1000%+ on my investment. If I had taken your 'advice', I would have missed out on an 800% rise. I have top-sliced my original investment, twice, so enjoy the ride. Call the top?
it's gone up a hundred percent over past two weeks. what do you expect ?
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