Bitcoin slid further on Wednesday, briefly dipping below the $61,000 mark in a session of volatile trade as the cryptocurrency attempted to stage a rebound.
At around 07:20 a.m. ET, bitcoin had bounced back to trade just over $63,900, up around 1% from 24 hours prior, according to CoinDesk data. Earlier on Wednesday, bitcoin had hit an intraday high of $65,716.
The cryptocurrency’s price has been supported by the launch of the spot bitcoin exchange-traded funds in the U.S. in January, as well as by the upcoming halving — an event written in bitcoin’s code, which effectively slows the supply of the digital coin onto the market. Historically, halving has supported prices.
However, the value of all digital coins in existence has plunged since bitcoin’s all-time high and was down $200 billion as of Wednesday morning, according to data from Coinmarketcap.
The entire cryptocurrency market has shed around $370 billion of value since the bitcoin all-time high, as other digital assets such as ether and Solana also fell sharply.
Part of the decline is likely profit taking following a sharp rally in cryptocurrencies.
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