Bitcoin recently surpassed the $123,000 mark but faced a pullback as traders took profits. The world's largest cryptocurrency fell by 3.2%, marking its largest decline in over three weeks, with a trading price of $117,386 in Singapore. Ethereum, the second-largest cryptocurrency, decreased by 1.4%, while smaller tokens like XRP and Solana each dropped nearly 2%.
Bitcoin's surge past $123,000 was fueled by optimism about potential progress in U.S. digital asset legislation, which could advance a crypto-friendly agenda. The cryptocurrency also benefited from a rebound in other risk assets, including U.S. stocks approaching record highs, as concerns over the economic impact of a new trade war under Trump eased.
Stefan von Haenisch, Director of OTC Trading for Asia-Pacific at Bitgo Inc., described the pullback as a standard market correction following an overheated phase. He noted that the next key support level for Bitcoin is $114,000, a price point that previously triggered significant short covering.
