The world’s most popular cryptocurrency was last down 10.57 % at $31,534, losing nearly a quarter since touching a record $42,000 on January 8
The drop in prices against the US dollar comes amid growing fears that bitcoin is one of a number of financial market price bubbles. According to traders, concerns over the fact that U.S. President Joe Biden’s administration could attempt to regulate cryptocurrencies have also weighed on the sentiment.
On January 7, the total market value of all cryptocurrencies surged above $1 trillion for the first time ever, as prices of bitcoin surged to a record high. Bitcoin climbed more than 900 % to $38,655, from $3,850 in March 2020, further rising to the $42,000 mark on January 8.
The market cap of all cryptocurrencies had increased 10 % to $1.042 trillion, out of which bitcoin accounted for around 69 % of the total market capitalisation.
Bitcoin had almost quadrupled in value surging exponentially in the past year, after entering the four-digit value for the first time in 2013.