Bitcoin Dips Back Under $60,000 As Profit-Takers Pounce

Bitcoin slipped more than 12% on Tuesday from last week’s record high as profit-takers moved in on the world’s leading cryptocurrency.

The digicurrency fell below $60,000, taking losses from a record high of $69,000 reached on November 10.

Bitcoin was down 5% at $60,391.3 at 1253 GMT, after earlier falling as much as $58,563, its lowest since October 28, while ether, the second-biggest cryptocurrency by market value, was down 6.8% at $4,253.08.

Cryptocurrency analysts pointed the finger at profit-taking after a recent sharp run-up.

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Bitcoin has more than doubled in value since June, driven by the mainstream adoption of cryptocurrencies and the launch in the United States of futures-based bitcoin exchange traded funds.

And on Sunday it went through a major upgrade, called Taproot, that enables its blockchain to execute more complex transactions, potentially widening the virtual currency’s uses and making it a little more competitive with ethereum for processing smart contracts.

“The fall below $60,000, puts [bitcoin] below the $62,000 support level, slightly into the ‘short term’ bearish zone,” said Sylvia Jablonski, chief investment officer at Defiance ETFs in New York.

“The next key support level is $58,000, but I think it gets bought up here, and demand driven prices will begin to play out to the upside.”

‘$100k Level in Sight’

Most investors expect bitcoin to remain between $50,000 to $75,000 in the next 12 months, according to BofA Securities’ monthly fund manager survey, while 59% believe bitcoin is in a bubble.

Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic, said it could potentially break “the $100k level before year’s end.”

Money pouring into bitcoin products and funds have hit a record $9 billion so far this year, and totalled $151 million last week in their 13th consecutive week of inflows, data from digital asset manager CoinShares showed on Monday.

Although flows have been positive recently, volumes have been subdued in the second half, averaging $750 million daily versus $960 million in the first, the CoinShares report said.

Reuters with additional editing by Sean O’Meara

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Tags: Bitcoin

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.