Bitcoin has fallen off its perch and is heading toward its sharpest weekly drop since September. Bitcoin’s pullback is triggered by worries over regulation and its frothy rally.
Bitcoin fell more than 5% to an almost three-week low of $28,800 early in the Asia session, before steadying near $32,000.
It has lost 11% so far this week, the biggest drop since a 12% fall in September.
BitMEX’s Research that suggested that part of a bitcoin may have been spent twice also triggered selling.
In the wake of BitMex’s report, kyle Rodda, an analyst at IG Markets in Melbourne, blames Bitcoin’s reversal in momentum on herd selling
Bitcoin was trading more than 20% below the record high of $42,000 hit two weeks ago, losing ground amid growing concerns that it is one of a number of price bubbles and as cryptocurrencies catch regulators’ attention.
Notably too, the call for a global regulation of Bitcoin by the European Central Bank President Christine Lagarde and the concerns raised by President Biden’s U.S. Treasury pick, Janet Yellen, have also dealt a blow to Bitcoin
Still, some said the pullback comes with the territory for an asset that is some 700% above the 2020 low of $3,850 hit in March.
Second-biggest cryptocurrency ethereum intially slipped to a one-week low on Friday before rising 6% late in the Asia session to $1,177.