Bitcoin fell sharply on Monday, losing ground from a record high of $34,800 touched a day earlier, with traders citing volatility in highly leveraged futures markets.
Bitcoin fell more than 14% after earlier touching as high as $33,670, wiping out more than half its 20% rally from New Year’s Eve to a record $34,800 on Sunday.
Bitcoin’s record high came less than three weeks after it crossed $20,000 for the first time, on Dec. 16. The world’s biggest cryptocurrency more than quadrupled in price last year.
Traders said bitcoin’s drop on Monday was not unusual for the volatile asset, whose wild price swings have in part prevented it from becoming widely used as a currency.
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Profit taking after such a steep rise in such a short space of time. Consolodation period necessary before resuming upward burst.