The value of leading cryptocurrency Bitcoin tumbled 20 percent Monday, wiping out some of the huge gains racked up in recent weeks as financial markets became more cautious.
The virtual currency fell to $31,061.83 according to the Bloomberg financial news service, a level last seen in March 2020 as the coronavirus pandemic sparked panic around the world.
The fall in crypto value comes amid a broader retreat on Monday for stocks, and a resurgence in the U.S. dollar.
While Bitcoin’s latest price tumble is dramatic in percentage terms, it is well shy of the wipeout that occurred last spring at the outset of the pandemic. In March, the digital currency fell nearly 60% to a low of around $3,800.
This week’s price collapse is also just the latest in Bitcoin’s long history of crashes, which have defined the currency since it launched in 2009.
Other notable setbacks include a fall from $29 to $2 in 2011, and the popping of the 2017 bubble, which saw Bitcoin bottom out near $3000 after hitting a then-record high of nearly $20,000.
The current price retreat does not appear tied to a specific event, but rather appears to be a combination of profit-taking and simple financial gravity.
Bitcoin first broke $20,000 in December and has since been on a dizzying run that saw it eclipse $40,000 last week. (AFP)
Additional report from fortune.com
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