© Reuters
Investing.com – plummeted after hitting an all-time high on Tuesday, as investors appeared to take some profits from the popular cryptocurrency's record, although sentiment remains bullish ahead of the major halving event.
Bitcoin () fell 8% to $61,682, after hitting an all-time high of $68,874 on Tuesday.
The downward move comes as some big investors, or so-called “bitcoin whales,” appeared to cash in on the record streak. Still, sentiment remains supported by expectations that BTC is poised to rally again in the run-up to its expected halving event in April.
Approximately every four years a halving event occurs, which reduces the number of bitcoins in circulation by half. Halving events in 2012, 2016 and 2020 had preceded previous bull runs for BTC.
The record high seen in bitcoin came after the launch of a spot-based bitcoin exchange-traded fund in January, fueling demand for the cryptocurrency among institutional investors. Recent data from BitMex Research showed US bitcoin ETFs hold nearly 4% of all bitcoins in circulation.
