Bitcoin heads for worst weekly loss in months

Bitcoin was trading more than 20 percent below the record high of $42,000 hit two weeks ago, amid concerns of a price bubble. (Reuters)
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  • The world鈥檚 most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session

SINGAPORE: Bitcoin wavered on Friday and was heading toward its sharpest weekly drop since September, as worries over regulation and its frothy rally drove a pullback from recent record highs.
The world鈥檚 most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session, before steadying near $32,000. It has lost 11 percent so far this week, the biggest drop since a 12 percent fall in September.
Traders said a report posted to Twitter by BitMEX Research suggesting that part of a bitcoin may have been spent twice was enough to trigger selling, even if concerns were later resolved.
鈥淵ou wouldn鈥檛 want to rationalize too much into a market that鈥檚 as inefficient and immature as bitcoin, but certainly there鈥檚 a reversal in momentum,鈥� said Kyle Rodda, an analyst at IG Markets in Melbourne, in the wake of the BitMEX report.
鈥淭he herd has probably looked at this and thought it sounded scary and shocking and it鈥檚 now the time to sell.鈥�
Bitcoin was trading more than 20 percent below the record high of $42,000 hit two weeks ago, losing ground amid growing concerns that it is one of a number of price bubbles and as cryptocurrencies catch regulators鈥� attention.
During a US Senate hearing on Tuesday, Janet Yellen, President Joe Biden鈥檚 pick to head the US Treasury, expressed concerns that cryptocurrencies could be used to finance illegal activities.
That followed a call last week from European Central Bank President Christine Lagarde for global regulation of bitcoin.
Still, some said the pullback comes with the territory for an asset that is some 700 percent above the 2020 low of $3,850 hit in March.
鈥淚t鈥檚 a highly volatile piece,鈥� said Michael McCarthy, strategist at brokerage CMC Markets in Sydney. 鈥淚t made extraordinary gains and it鈥檚 doing what bitcoin does and swinging around.鈥�
Second-biggest cryptocurrency ethereum initially slipped to a one-week low on Friday before rising 6 percent late in the Asia session to $1,177.