Investing.com investing.com 04 Jan, 2021 12:15 am

Bitcoin slumps, slamming brakes on New Year rally By Reuters

Bitcoin slumps, slamming brakes on New Year rally By Reuters
Bitcoin slumps, slamming brakes on New Year rally

FILE PHOTO: A representation of virtual currency Bitcoin By Tom Wilson and Kevin Buckland LONDON/TOKYO (Reuters) - 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.Smaller coins that often move in tandem with bitcoin also fell, though not as sharply.A functioning cryptocurrency derivatives market has developed since 2017, with offshore exchanges still offering highly leveraged trading.

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."It's still an unavoidably volatile asset by its nature," said Joseph Edwards of crypto brokerage Enigma Securities.

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