Bitcoin is showcasing a classic slice of volatility having emerged from its latest banana zone.
The world’s largest cryptocurrency was slapped 5% lower this money and another 1.2% yesterday before recovering those Tuesday losses this morning.
It brings that BTC/USD pair below $93,200 at the time of writing.
Bitcoin’s bout of yo-yo-ing follows a breakneck rally that saw it soar nearly 50% in the weeks following the US election to an all-time high just shy of $100,000.
The rally was chalked up to the ‘Trump trade’ effect as president-elect Donald Trump swept into power on a pro-crypto, pro-bitcoin platform.
These jumbo gains proved too alluring for some traders, to cash out their profits just before bitcoin could secure the $100,000 price point for the first time in history.
Nonetheless, the BTC/USD pair remains exceptionally well bid in with a year-to-date gain of 121%
Bitcoin’s year-to-date performance – Source: tradingview.com
Spot-bitcoin exchange-traded funds have also cooled down following a post-election groundswell of inflows.
Farside data shows over $550 million in outflows in the previous two days, following a multi-billion-dollar inflow in the preceding week.