Bitcoin marks dip of $50,000 as investors get jittery about its valuation
SINGAPORE – With investors getting a little jittery about the bitcoin’s lofty valuation and some leveraged players taking profits, the cryptocurrency dipped $50,000 on Tuesday.
It dipped more than 10%, which is its largest daily slump in a month to hit $48,575. That prolongs a sharp withdrawal of more than 16% from a record high surge on Sunday, although bitcoin remains up around 75% for the year.
The dip cam despite the US dollar weakness.
“The market’s rallied almost unimpeded since the beginning of the month and to some degree since the beginning of the year,” said James Quinn, managing director at digital asset platform Q9 Capital in Hong Kong.
“Seeing some selling at all is perfectly healthy and normal,” he said, adding that some $1.5 billion in liquidation of leveraged positions on crypto exchange Binance was large and suggested retail investors might be selling.
The cryptocurrency market has been really hot this year as big money managers have begun taking the asset class seriously, making large purchases that have driven more confidence among small-time speculators.