Bitcoin fell below $40,000 today, after climbing over the weekend to its highest level since May.
According to Arab Net, the largest cryptocurrency fell 4.9% and was trading at $39,790 in the morning in Hong Kong. Other cryptocurrencies also fell, including Ether, which ranks second.
Analysts pointed out that profit-taking underlies these declines.
This is just a natural pullback in the wake of the bullish move, according to Bloomberg. p>
The declines have sent Bitcoin back to the top of the $30,000-$40,000 trading range that has been in place since the cryptocurrency suffered a defeat in May.< /p>
The cryptocurrency has received a boost in recent weeks from supportive comments from billionaire Elon Musk and investor Cathy Wood of Ark Investment Management LLC, as well as speculation about the retail giant's possible entry. Amazon in the cryptocurrency sector.
At the same time, sector scrutiny is intensifying, and along with a crackdown in China, this also includes pushing US lawmakers to impose stricter rules on crypto investors to collect More taxes to fund part of a planned $550 billion investment in transportation and energy systems.
Crypto traders are also awaiting the expected upgrade this week of the Ethereum network, which could boost the price of the network-based Ether by slowing the pace of cryptocurrency supply growth. .
