2024-03-05 23:11:54
The cryptocurrency Bitcoin fell on Tuesday, shortly following reaching a new all-time high for the first time in more than two years.
The cryptocurrency’s price exceeded $69,210 on Tuesday morning, according to the Coin Metrics website, then quickly declined in late followingnoon trading by 8% at $61,973.37.
However, with Bitcoin up 45% this year already, investors have warned that things may cool down soon as unrealized profit margins approach record levels.
CNBC quoted Ed Tolson, CEO and founder of the Kbit cryptocurrency hedge fund, saying: “The market is in a position to undergo a sharp correction, perhaps between 10% and 20%,” suggesting that “Bitcoin will perform well.” “In the next stage), but with sharp corrections along the way.”
The price of the largest cryptocurrency in the world has increased by nearly 200 percent over the past year. Gains have increased over the past months, as a result of interest related to regulatory approval for the offering of Bitcoin exchange instruments at the beginning of this year.
Analysts attributed the recent rise to the increasing popularity of this new means of investment, in addition to building expectations regarding “a halving in the value of Bitcoin” during the next month.
The digital currency Bitcoin witnessed sharp changes in its price, as it jumped from regarding five thousand dollars at the beginning of the pandemic, to regarding 69 thousand dollars in November 2021, partly due to the high demand for technology products.
Prices fell once more during the period of raising interest rates to control inflation, and then the collapse of the cryptocurrency exchange giant in 2022, which affected people’s confidence in the industry.
At the beginning of last year, the price of one Bitcoin was less than $17,000, but investors returned in large numbers, while inflation began to decline.
The collapse of prominent technology-focused banks in 2023 led more investors to resort to cryptocurrency, while abandoning support for startups in Silicon Valley and other risky bets.
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