Bitcoin falls below $50,000
Despite the weakening dollar, Bitcoin fell below $50,000 on Tuesday as investors started to fear the rising valuation of the cryptocurrency.
Bitcoin declined more than 10% on Tuesday trade, suffering from its biggest daily drop in a month after closing at $48,575.The cryptocurrency’s losses mounted to 16% from its highest level reached on Sunday. However, Bitcoin remains upbeat on a yearly basis, up 75% for 2021.
Bitcoin’s valuation surged this year as the cryptocurrency is starting to get the attention of big money managers, which gives small-time speculators more confidence. Earlier this month, Tesla invested $1.5 billion in Bitcoin, pushing the crypto coin to breach the $50,000 valuation.
Meanwhile, Ether, the second-largest crypto, also fell more than 10% and closed $1,613, down about 20% from last week’s record peak.