The world’s leading digital asset, bitcoin, has suddenly lost as much as 15 percent of its value, dropping to nearly $28,000, while alternative cryptocurrencies grow, catching up with the leader.
Following an unprecedented rally through the New Year holidays, bitcoin plunged to $28,218, dropping 14.68 percent before bouncing back to $30,000, according to data tracked by CoinDesk, a media outlet devoted to cryptocurrencies. Bitcoin was down 8.71 percent at $31,105 at 11:55 GMT.
“Bitcoin is having a much-needed reset. After a period of increased leverage and high [perpetual] funding rates across derivatives platforms, a brief consolidation around these levels is required,” Matthew Dibb, co-founder and COO of Stack Funds, told CoinDesk.
The token displayed a massive bull run over the past week, hitting another all-time high of $34,000 on Sunday. The surge boosted bitcoin’s market cap to nearly $640 billion.
Ether, the second-largest digital currency by market value, rose to a 35-month high above $1,150 early Monday, before bouncing back to $980, demonstrating a more than 18-percent gain on a daily basis.
Litecoin was trading at $155, at its highest since April 2018, while bitcoin cash advanced nearly five percent to $406, hitting an 11-month high. Other coins have reportedly trimmed gains, but are still outperforming bitcoin.
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