The leading cryptocurrency bitcoin slipped 1.1% early Saturday to trade at $56,965. Earlier this week, the cryptocurrency had climbed within $200 of the all-time high of $58,350 set on Feb. 21. The Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether, and three other cryptocurrencies, slumped 2.5%. “The bears’ last stand is the $57,800 level, and it looks like we might be seeing that battle play out before the week is over,” said Matt Blom, global head of sales trading at EQUOS, as reported by Bloomberg.
Continue selling could take BTC back to $55,000.
Matt Blom added, “On the downside, continued selling above $57,000 will see us slip back toward $56,620 and potentially $55,000. Dip-buying bulls and dip-buying bears alike will support any move below here.” As reported earlier, the largest cryptocurrency exchange, Binance Holdings Ltd., has come under scrutiny from the Commodity Futures Trading Commission over concerns that the company may have allowed Americans to place bets in violation of U.S. rules. The digital asset is up nearly tenfold in the past year as optimism over rising institutional demand pushed prices to record highs.
Bitcoin continues to gain mainstream exposure.
The leading cryptocurrency has gained a lot of mainstream exposure along with several other cryptocurrencies. The price of bitcoin soared above $50,000 for the first time in its history. The main reason attributed to the massive winning rally of bitcoin was increased institutional interest in cryptocurrency. As reported earlier, the world’s leading electric car maker Tesla bought $1.5 billion worth of bitcoins in mid-January. While some predict that Bitcoin is a stimulus-fueled bubble likely to burst, industry participants argue that institutional adoption will prevent it from plummeting from its highs, as witnessed in 2017-2018. At the time of writing, BTC is changing hands at just above $56,700.