This decline reflects a broad recovery in the dollar against a basket of six major currencies The possibility of raising interest rates reduces risks against the dollar.
The second largest cryptocurrency, Ethereum, which tends to move in tandem with Bitcoin, lost 23%, reaching its lowest level in a week at $ 985.
Interest in Bitcoin is growing due to heavy buying from institutional investors, who see it as a hedge against inflation and more vulnerable to profits if it is widely adopted.
The price of the cryptocurrency has more than doubled since early December, to a record $ 42,000 on Friday.This prompted some investment banks to warn of an impending bubble.
Bank of America said last week that the world’s most popular cryptocurrency could reduce previous bubbles, such as the dotcom boom in the late 1990s, China in the 2000s, and gold in the 1970s.
However, strategists at JPMorgan have claimed that Bitcoin has emerged as a competitor to gold and could reach $ 146,000 if stabilized as a safe haven asset.
