Bitcoin is rolling a slide, aiming for the worst week since March 2020 – Business

Bitcoin fell heavily on Friday and was aiming for its sharpest weekly collapse since last March, as concerns over its technology and regulation plunge back from its most recent highs.

The world’s most popular cryptocurrency fell more than 5 percent to a nearly three-week minimum of $ 28,800 in the Asia session, before standing at around $ 30,000. It has lost 15pc so far this week, the biggest drop since a 33pc fall in March.

Traders said a report posted to Twitter by BitMEX Research, which suggests that part of bitcoin may have been spent twice, hurt confidence in the technology underpinning the asset class and also a disadvantage late after a rally huge.

“You wouldn’t want to rationalize too much into a market that is as inefficient and immature as bitcoin, but there’s certainly a reversal of momentum,” said Kyle Rodda, an analyst at IG Markets in Melbourne, following the BitMEX report. “The herd probably looked at this and thought it sounded scary and shocking and now is the time to sell.”

Bitcoin is now about 30pc at its all-time high of $ 42,000 and hit two weeks ago, losing ground amid growing concerns that it is one of several financial market price bubbles and as cryptocurrencies are catching the attention of regulators.

During a US Senate hearing on Tuesday, Janet Yellen, President Joe Biden’s choice to head the US Treasury, expressed concerns that cryptocurrencies could be used to fund illegal activities.

That followed a call last week by European Central Bank President Christine Lagarde for global regulation of bitcoin.

Still, some said the downside comes with the territory for an asset that’s about 700pc higher than the 2020 low of $ 3,850 hit in March.

“It’s a very volatile piece,” said Michael McCarthy, a strategist at GDP Markets Brokerage in Sydney. “He made some amazing gains and is doing what bitcoin is doing and swinging around.”

The second-largest cryptocurrency ethereum also fell to a one-week minimum, from $ 1,041.22, before improving to steady around $ 1,144.