Bitcoin logged its worst plunge since March in the previous three sessions, stoking concerns among traders that its overheated price rally is beginning to lose steam.
The flagship cryptocurrency plunged 5.18 percent during the weekend and extended its correction by an additional 7.29 percent to $35,388 by 0916 GMT on Monday. At its intraday low, it was changing hands for $32,265. On the whole, the downside move marked Bitcoin’s biggest three-day decline since March.
Bitcoin’s first major correction after its 100%-plus rally in three weeks. Source: BTCUSD on TradingView.com Bitcoin’s first major correction after its 100%-plus rally in three weeks. Source: BTCUSD on TradingView.com Why Bitcoin Plunged
At the core of the cryptocurrency’s bearish correction was profit-taking, led by concerns ranging from its overbought status, the recovery in the US dollar index, and rising yields on the US 10-year Treasury benchmark note.
Traders appeared to have reallocated some of their profits into the cash and bond markets, primarily as