The cryptocurrency market extended a more than month-long retreat during Asia trading on Friday.
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Market bellwether bitcoin dropped as much as 2.1 per cent to reach below US$86,000 for the first time since April, as the market struggled to find new buyers and the momentum that had supported prices earlier this year evaporated.
The pullback comes after weeks of unwinding among fast-moving traders and lingering positioning from October’s record run-up, which has left the market more vulnerable to selling pressure and sharp swings.
Bitcoin was trading at US$85,474 at 10.59am in Singapore on Friday.
“Crypto is suffering from heavy selling by whales who follow the four-year cycle narrative, and this is typically the point in that cycle where prices fall,” said James Butterfill, head of research at European asset manager CoinShares.
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“While we don’t subscribe to this view from a fundamentals perspective, it has become somewhat self-fulfilling, with large holders selling more than US$20 billion since September.”
Stocks had surged on a fresh wave of artificial intelligence exuberance following positive results from Nvidia Corp, only to see those gains evaporate.