Bitcoin’s record-breaking rally loses steam
After hitting an all-time high of just over $34,000 over the weekend, the value of Bitcoin plunged on Monday morning.
The cryptocurrency is currently trading at $30,196, according to Coindesk, down nearly 10 per cent from its record high over the weekend.
Bitcoin topped $34,000 on Sunday morning before settling at just over $33,400 by mid-afternoon.
Renewed interest in the cryptocurrency from institutional investors has seen prices soar, gaining more than 300 per cent in 2020. It has added more than 50 per cent since crossing the $20,000 mark just two weeks ago.
Bitcoin, which celebrated its 12th birthday this weekend, experienced a similar rally in 2017 closing in on the $20,000 milestone before hitting extreme lows and falling below $3,300.
The currency, which is created and traded using blockchain, is considered by many investors to offer an attractive hedging option against traditional financial markets.
Amid the pandemic many traders have flocked to Bitcoin, considering it a safe-haven asset.
It has won growing support among the payments industry with Paypal the latest big name to adopt the digital currency.
Ethereum, the world’s second largest cryptocurrency, has also seen increased interest gaining 465 per cent in the last year.
This morning it was trading at $1,142 before falling to $959.20 by 10.55am.