The profit-taking comes after Bitcoin reached above 41,946.74 dollars for a new all-time high which also saw the market cap for cryptocurrencies hit over 1.0 trillion dollars for the first time ever. Bitcoin fell by 4.09 percent to sell for 33,250.79 dollars, up 1.46 percent on a weekly basis.
Bitcoin fell extremely hard over the weekend and into Monday after reaching 41,946 dollars last week. The cryptocurrency fell from those aforementioned highs to $30,000 in a massive flush lower on Monday, liquidating billions worth of positions.
The drop in the market was based on macro trends, some have indicated.
Bitcoin’s drop on Monday coincided with weakness in the strength of foreign currencies, which had trended higher against the U.S. dollar over the past few months. The U.S. dollar index bounced around 0.7 percent, which is a large move for a market worth trillions.
Bitcoin’s recovery over the past few hours has also coincided with a drop in the U.S. dollar index. Many analysts say it is now important to watch where this index goes next to determine the overall direction of the crypto market.
One analyst shared the charts below just recently, noting that Bitcoin’s next move is likely to be determined by the U.S. dollar, according to Bitcoinist. (Table)