TOKYO (JAPAN) – A day after topping $40,000 for the first time, Bitcoin registered a slump of more than 5% on Friday.
It slid to as low as $36,618.36 on Bitstamp exchange. In the previous session, it reached an all-time high of $40,402.46.
On the other hand, rival cryptocurrency ethereum slid more than 10% reaching a low of $1,064.89.
The world’s most popular cryptocurrency has rallied more than 700% since a low in March and on January 2, it topped $30,000 for the first time after surpassing $20,000 on Dec. 16.
However, market participants had warned of a correction after the currency reached the $40,000 milestone.
The surge of Bitcoin was powered by enhanced demand from institutional, corporate, and retail investors who were attracted by the prospects of quick gains and negative interest rates.
On January5, strategists at JPMorgan wrote that Bitcoin has emerged as a contender to gold and could trade as high as $146,000 if it becomes established as a safe-haven asset.