The furious rally of the digital currency Bitcoin took a heavy hit on Monday. By the afternoon, the price of the most valuable cyber currency had fallen to as low as $ 49,000. Especially around the opening of Wall Street, the price losses increased almost every minute before Bitcoin could quickly make up some of its losses. In the early evening it is trading at just under $ 54,000.
It wasn’t until the weekend that the most popular cryptocurrency once again reached new record levels. On Sunday, it hit a new high of $ 58,330. Earlier, on Friday, Bitcoin’s market capitalization had risen above the $ 1 trillion mark for the first time.
The head of the electric car manufacturer Tesla had tweeted at the weekend that he felt the current price level as “high”.
The negative sentiment was also carried over to the prices of the smaller crypto currencies, most of which were clearly in the red.
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“Consolidation is necessary in view of the fact that prices are still overheating,” says analyst Timo Emden from the analysis company of the same name. At the beginning of February, Bitcoin was still under $ 34,000 and market capitalization was $ 630 billion.
The increasing interest of institutional investors has recently spurred Bitcoin. Two weeks ago, Tesla announced that it had invested $ 1.5 billion in the digital currency at an unspecified time in January and that it would accept Bitcoin as a means of payment in the future.
The latter in particular could help establish Bitcoin in the financial system in the long term.
The volatile development on Monday should have confirmed her view.
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