Bitcoin is back above $4,000 a coin on Wednesday, as the digital currency pars back losses.
Bitcoin fell below $4,000 late on Tuesday after a sensational rally on Sunday and Monday that saw the cryptocurrency break the $4,000 and $4,500 mark for the first time.
The digital currency was down as much as 4% against the dollar in early trade on Wednesday but is making up ground in mid-morning. Bitcoin is down 1.8% against the dollar to $4,079.55 at 12.30 p.m. BST (7.30 a.m. ET).
- Markets Insider
Mati Greenspan, an analyst with trading platform eToro who follows the crypto space closely, says in his morning email: “This week we saw a massive surge in bitcoin that simply dominated the entire cryptocurrency market. Today, it seems we’re experiencing a bit of a pullback.
“The is quite normal of course. Any asset that can surge 62% in a week and a half should also expect a sizeable retracement after such a run.”
If Bitcoin collapses 50% from current levels, it will still beat every asset class for 2017 returns.
— Ari Paul (@AriDavidPaul) August 15, 2017
Elsewhere in the crypto space, Bitcoin Cash, a new digital currency spun off from the Bitcoin network at the start of the month, is down 3.6% against the dollar to $293.00. Ethereum, the second biggest cryptocurrency by market cap after Bitcoin, is down 0.79% against the dollar to $284.04.