Bitcoin takes breather after retreat from record near $62,000

Bitcoin takes breather after retreat from record near $62,000

News: Bitcoin takes breather after retreat from record near $62,000.

TOKYO (Reuters) – Bitcoin consolidated around $ 60,000 on Monday, taking a breather from the weekend’s record high as investors braced for inflation concerns and U.S. economic spending to push it even further.

The world’s most popular cryptocurrency fell to $ 58,956.90 at the start of the Asian session, falling from Saturday’s record high of $ 61,781.83.

The rally may have been dampened by a Reuters report that India would pursue a digital asset ban, a rain cloud for Bitcoin, after high-profile recommendations from Tesla’s Elon Musk were released earlier this year. TwitterJack Dorsey and investment giants Goldman Sachs and BlackRock.

Bitcoin more than doubled in 2021 after quadrupling last year.

“The investments of institutional investors and companies are increasing. That’s what I call the financialization of Bitcoin, ”said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“It is becoming an asset that investors can no longer ignore.”

Bitcoin’s surge over the weekend was helped by an improvement in risk appetite in financial markets after President Joe Biden signed his $ 1.9 trillion stimulus package and ordered vaccinations to be accelerated.

Justin d’Anethan, director of sales for digital asset firm Diginex in Hong Kong, said that momentum had an impact on thinner markets over the weekend, with technical factors adding to the surge.

“The crypto market is full of derivatives,” he noted.

“A small increase triggered a lot of liquidations on Saturday and Sunday and thus became a not so small step.”

Seth Melamed, the Tokyo-based chief operating officer of Cryptocurrency Exchange Liquid, said laws like the ones India is proposing would not hinder further profits for Bitcoin.

“Because it is decentralized, government bans or acceptance are somewhat irrelevant,” Melamed said. “Capital will find a way.”

Reporting by Kevin Buckland; Additional coverage by Sagarika Jaisinghani and Alun John; Adaptation by Vidya Ranganathan and Jacqueline Wong

Original Source © Reuters

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