Bitcoin rose from $ 57,580 this morning to $ 48,967 Around noon, before quickly recovering and Settle at around $ 54,000, According to the portal specialized in citation Digital currencies Queen Market Cap.
The decline in Bitcoin price coincided with trading volume $ 91,060 million in the last 24 hours, 60% more of that traded on Sunday, in line with what appears to be profit-taking by investors who have sought to generate close to 100% of the income Bitcoin provided in just two months.
To take the dimension, Bitcoin started the year at $ 29,300 and on Sunday topped $ 58,000, Which means an increase of 98% in less than two months.
“The heavy selling on Monday is definitely the result of traders’ excessive confidence with unsustainable leverage,” Bendik Norheim Schei, head of research at Arcane Research, told Bloomberg.
Bitcoin’s bullish rally has had strong momentum in the past two weeks, after Electric vehicle manufacturer Tesla will announce an investment of $ 1.5 billion in that cryptocurrencyIn addition to a statement that he will accept it in the future as a form of payment.
Meanwhile, the second-largest cryptocurrency by market cap, Ethereum, also suffered a similar drop on Monday, moving from trading $ 1,939 earlier in the day to $ 1,580, and then later. $ 1800 USD.
Another reason that could have caused the price of major cryptocurrencies to drop is the words of the United States Treasury Secretary, Janet Yellen, who is considered today ‘Very ineffective’ To Bitcoin, which he said is often used for “illicit financing”.
“It is a highly speculative asset. I am concerned about the potential losses that investors may suffer.”Yellen confirmed at a hypothetical event in The New York Times, in which he said he did not believe Bitcoin “is a widely used transaction mechanism.”
However, he said he was exploring the possibility of releasing an ‘My digital dollar’, Maintained by the US Federal Reserve and relies on blockchain technology like the rest of cryptocurrencies.
“We have a problem with financial inclusion. A lot of Americans don’t really have access to easy payment systems linked to their bank accounts. I think the digital dollar, the digital currency of the central bank, can help make payments faster, safer, and cheaper.” Said the Federal Reserve chief the previous.
