Bitcoin recently retreated sharply from its new peak, sparking concerns that the current upswing in cryptocurrencies might be unsustainable.
The leading digital currency experienced a decline of over 5% during the Asian trading session, reaching a low of $66,629.96. It later stabilized, showing a 3.9% decrease at $68,644.80.
This fluctuation in Bitcoin’s value occurred just a day after it soared to a record $73,803.25, marking its fourth consecutive day of setting new highs.
Michael Hartnett, the Chief Investment Strategist at Bank of America, expressed to Bloomberg TV that the market trends are indicative of a bubble. He highlighted the rapid growth in the tech sector’s top seven stocks and the unprecedented highs in cryptocurrency values.
Matt Simpson, a senior market analyst at City Index, commented on Bitcoin’s nature, noting:
“Bitcoin is known for its extreme volatility and harsh corrections following the achievement of record highs. Moreover, the recent peak coincides with indications that the Federal Reserve may adopt a less accommodative stance than what traders had anticipated.”
The Bitcoin price is $67,644.93, a change of -8.04% over the past 24 hours as of 8:31 a.m.
