Bitcoin has fallen sharply on Monday after surging to a record $58,354 a day earlier. This falloff happened due to a selloff in global equities curbing risk appetite.
The most popular cryptocurrency soared over the weekend to a record high, almost doubling year-to-date. It eventually hit a market capitalisation of $1 trillion on Friday.
Bitcoin’s gains have been fueled by signs it is gaining acceptance among mainstream investors and companies, from Tesla Inc and Mastercard Inc to BNY Mellon.
However, it fell as much as 6% on Monday and was last trading down 4.4% at $54,941. Rival cryptocurrency ether fell 7% to $1,798 after also hitting a record high on Saturday.
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Traders have said the move was largely technical, and not tied to any particular news catalyst.
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“We did finally see some momentum gathering over the weekend, but weekend rallies haven’t been sustainable lately,” said Joseph Edwards of Enigma Securities, a cryptocurrency broker in London.
“We do tend to think that there’s a good chance of a down week and small correction coming in off of this, although it does little to dull medium-term prospects.”
Tesla boss Elon Musk, whose tweets on bitcoin have added fuel to the cryptocurrency’s rally, said on Saturday the price of bitcoin and ethereum seemed high.
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