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Bitcoin down sharply after hitting record highs this weekend

Bitcoin fell sharply on Monday after the price for a single unit of the digital currency surged to a record $58,354 US a day earlier, as a selloff in global equities curbed risk appetite.

Most popular cryptocurrency rallied to record levels, almost doubling year-to-date

Bitcoin hit a market capitalization of $1 trillion US on Friday. (Dado Ruvic/Illustration/Reuters)

Bitcoin fell sharply on Monday after the price for a single unit of the digital currency surged to a record $58,354 US a day earlier, as a selloff in global equities curbed risk appetite.

The most popular cryptocurrency rallied over the weekend to record levels, almost doubling year-to-date. It hit a market capitalization of $1 trillion on Friday.

Bitcoin's gains have been fuelled by signs it is gaining acceptance among mainstream investors and companies, from Tesla Inc. and Mastercard Inc. to BNY Mellon.

It fell six per cent on Monday to $53,866. The cryptocurrency pared losses after falling as much as 16 per cent on Monday and going as low as $47,400.

Largely technical moves

Traders said the move was largely technical and not tied to any particular news catalyst.

"We did finally see some momentum gathering over the weekend, but weekend rallies haven't been sustainable lately," said Joseph Edwards of Enigma Securities, a cryptocurrency broker in London.

"We do tend to think that there's a good chance of a down week and small correction coming in off of this, although it does little to dull medium-term prospects."

Tesla boss Elon Musk, whose tweets on bitcoin have added fuel to the cryptocurrency's rally, said on Saturday the price of bitcoin and ethereum seemed high.

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