Bitcoin prices are now seeing tumbling and in today's session witnessed a drop of 5% and on a weekly basis recorded a decline of 15%. Early in the Asian trade, it slumped to levels of $29,300. This is after the largest crypto hit a mammoth price of $42000, almost 2 weeks ago. The gains were fuelled on expectations of its acceptance as a mainstream payment solution as well as it being invested into by more institutional investors.
And now it's steep dive has to do with concerns over possible regulation for cryptocurrencies. In the previous day also, the digital token recorded a low of 11%. And now as the decline comes, there is caution that there could be more retreat left after the last year's magnificent surge of 300 percent.
"This level looks very vulnerable and a break below it is bad news in the near-term for Bitcoin and cryptos in general," Craig Erlam, senior market analyst at Oanda Europe, wrote in a note Thursday. "I wouldn't be surprised to see a test of $20,000 before too long."
After hitting and surpassing levels of $20000 for the first time in December, the digital currency was recording gains and in January hit above $30000 and now after hitting levels of $42000 is witnessing volatility.