Bitcoin price dropped more than 5 percent in trading Friday (8/1). The decline occurred a day after breaking the record high price of US $ 40 thousand was broken.
Quoted from Reuters, the most popular digital currency in the world fell to a level of US $ 36.61 thousand on the Bitstamp exchange. Previously Bitcoin had broken through to an all-time high of US $ 40.4 thousand.
Meanwhile, Bitcoin competitor Ethereum has slumped more than 10 percent to US $ 1,064.89.
Bitcoin has gained more than 700 percent since its lowest point in March. Bitcoin hit US $ 30,000 for the first time on January 2, after surpassing the US $ 20,000 price tag on December 16.
However, market players have warned of a correction after reaching US $ 40 thousand.
Increasing demand from institutions, companies and recently from retail investors has driven bitcoin’s surge. The reason is, many are attracted by the prospect of quick profits.
JPMorgan strategists see that the digital currency has emerged as a rival to gold and can be traded as high as US $ 146K if designated as a safe-haven asset.
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