Bitcoin, the world's top cryptocurrency, hit record highs last week, but since reaching a record high of nearly $74,000, it has fallen 13% to trade just below $68,000 on Thursday, March 21, Business Insider1 reported. It is noted that such fluctuations are not uncommon in cryptocurrency. However, thanks to the hype surrounding the approval of spot ETFs in January, Bitcoin is still up around 50% year-to-date1.

While many investors believe that the possible cause of the drop is profit locking, where traders sold some of their holdings after a long rally, the reasons for the recent fall in Bitcoin remain unclear1.

It is noted that other cryptocurrencies have also experienced difficulties. The second most popular cryptocurrency Ether has fallen 8% to around $3,500 over the past five days, while popular altcoin Solana has fallen 12% since Monday1.

According to Mark Ostwald, chief economist at ADM Investor Services International, bitcoin's weakness could persist if investors face signs of an economic downturn that could prompt them to sell or shift to more stable assets such as bonds or the US dollar1.He also added that the surge in risk assets, including technology stocks and cryptocurrencies, over the past year suggests that the market has become "anesthetized to big events" such as interest rate hikes and the war in Ukraine.

#ціна #Bitcoin(BTC) #інвестиції