Bitcoin reverses course after another record setting rally

Eren Sengezer FXStreet

Bitcoin continued to rise on Thursday, reaching its fresh record high at $2740, an 180% rally year-to-date, but finally started to erase its earnings. As of writing, Bitcoin is trading at $2420, losing 1.4% on the day.

There were no clear catalysts behind today's drop and it seems to be nothing more than a deep correction. Bitcoin's relentless upsurge has been fueled by the legalization of the digital currency in Japan and the rising demand from Korea. "Arbitrage between the fiat pairs drags markets up or down in line with leading markets. At present, volumes on the KRW and JPY pairs dominate trading with a combined 48 percent market share," Charles Hayter, CEO of CryptoCompare, told CNBC recently.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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