SINGAPORE: Bitcoin fell heavily on Friday and was heading towards its sharpest weekly drop since last March, as worries over its technology and regulation extended a pullback from recent record highs.
The world’s most popular cryptocurrency fell more than 5 per cent to an almost three-week low of $28,800 in the Asia session, before steadying around $30,000. It has lost 15 per cent so far this week, the biggest drop since a 33 per cent fall in March.
Traders said a report posted to Twitter by suggesting that part of a bitcoin may have been spent twice, had hurt confidence in the technology underlying the asset class and also that a pullback was overdue after a huge rally.
“You wouldn’t want to rationalise too much into a market that’s as inefficient and immature as bitcoin, but certainly there’s a reversal in momentum,” said Kyle Rodda, an analyst at IG Markets in Melbourne, in the wake of the BitMEX report. “The herd has probably looked at this and thought it sounded scary and shocking and it’s now the time to sell.”
Bitcoin is now around 30 per cent below the record high of $42,000 it hit two weeks ago, losing ground amid growing concerns that it is one of a number of financial market price bubbles and as cryptocurrencies catch regulators’ attention. — Reuters
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