Bitcoin Loses Momentum
The cryptocurrency market on Monday is trading in negative territory, following а record-shattering rally that took place during the weekend. On Saturday, the largest coin by market cap and the most popular, Bitcoin, broke the $60,000 mark and reached as high as $61,800. The new all-time top came after high volumes of liquidity poured into Bitcoin’s market capitalization, which surged to nearly $1.2tn.
The meteoric rise in crypto is taking a breather on Monday as prices have subsided from their record highs. The whole digital asset market is in decline with bitcoin also trading in the red, currently down near levels around $57,000. Bitcoin slipped earlier to an intraday low of $54,700 before bulls regained control and bought the dip. The largest crypto asset is down 5.5% on the day, sliding from $60,200 to its current market price of $56,900.
2021 the Year of the BTC Milestones
Recently, it’s been a difficult task to keep a lid on Bitcoin. A few attempts to pressure the asset have yielded no results as every time the price slid, investors have quickly rushed into the coin and pushed its price to a new high. The recent low of $54,700 was last seen on Mar 12, just a day before the extension of the rally took the price to a historical top. Reaching $61,000 was a huge milestone for crypto enthusiasts who keep on cheering the seemingly tireless bull run. From the start of the year to the record high on Saturday, the price of the apex cryptocurrency has increased by over 111%, and over 95% year-to-date.
As US lawmakers gave the go-ahead for the $1.9tn stimulus bill, crypto proponents point to Bitcoin’s inherent properties, and most of all, acting as an inflation hedge. While the US Federal Reserve is signaling a gradual rise in prices, market participants are increasingly concerned over the prospects for a sharp rise in inflation. In this regard, many crypto supporters rely on Bitcoin to provide them with the needed protection in times of political and economic uncertainty.