The prices of the world’s largest electronic currency, “Bitcoin”, fluctuated on Friday, and is heading towards the worst weekly decline since last September.
Concerns about regulation and the over-appreciation of the electronic currency, the largest in the world, “Bitcoin”, led to its retreat from record highs reached recently.
The world’s most popular cryptocurrency fell by more than 5% to its lowest level in nearly three weeks at 28,800 dollars in early trade in Asia, before stabilizing near 32,000.
The currency has lost 11% since the start of the week, the biggest decline since it fell 12% in September.
Traders say a report published by BitMix Research on Twitter indicates that a portion of Bitcoin may have been spent twice was enough to trigger a sale, even if those concerns were calmed down later.
Bitcoin is trading more than 20% lower than its record high of $ 42,000 reached two weeks ago, incurring losses as concerns grow that it is one of several price bubbles and as cryptocurrencies are gaining attention from regulators.
The second largest cryptocurrency, Ethereum, initially fell to its lowest level in a week on Friday, before rising 6% in the late Asian session to $ 1,177.
Investors are increasing expectations that the administration of US President Joe Biden will launch a huge economic stimulus to mitigate the repercussions of the pandemic, which will increase demand for fuel and oil, respectively, and gold to hedge against inflation.
Supporters of Bitcoin argue that it is maturing as a hedge of a weak dollar and the potential for faster inflation in the global economic recovery. Others say the hallmark remains speculative booms followed by crashes.
The price of Bitcoin rose over the course of 2020 by more than 300%, approaching $ 30,000, compared to about $ 7,000 12 months ago, a record high for the world’s most popular digital currency.
But the gains did not stop there, as the cryptocurrency jumped from about $ 14,000 in early November to more than $ 34,000 last Sunday, continuing its gains in the new year, in a huge jump that lasted two months, which brings to mind Fast Leap for 2017.