Bitcoin plunges 17% as record-shattering rally succumbs to valuation fears
Bitcointumbled as much as 17% on Monday after hitting a record above $58,000 over the weekend.
- On Sunday, bitcoin hit $58,042, bringing its year-to-date gain to more than 100%.
- The popular cryptocurrency surged by 305% in 2020.
Bitcoin tumbled as much as 17% on Monday, to below $48,000.
On Sunday, the cryptocurrency hit a record of $58,042, bringing its year-to-date gain to over 100%. On Friday, it reached a market capitalization of $1 trillion.Monday's slide is a sign of the wariness of the cryptocurrency's rapid ascent. Bears have long said bitcoin is in bubble territory, comparing the recent rally to what played out in 2017, when bitcoin plunged by 45% shortly after reaching highs. In 2020, bitcoin surged by 305%.
On Sunday, Saylor said in a tweet to his half a million followers, "It is only speculation if you don't understand the technology or why you need it."As for
Tesla CEO Elon Musk has been a vocal supporter of the cryptocurrency, most recently describing it as "a less dumb form of liquidity than cash." On Saturday, Musk did acknowledge that the price of bitcoin seemed high.
Many think that bitcoin's dizzying rally could have been driven by buyers looking to hedge against inflation or simply by people trading the cryptocurrency.Still, some bitcoin bulls have told Insider that they expect the cryptocurrency to rise even more, to as high as $250,000 in the next three years.
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