Bitcoin (BitfinexUSD) fell 8% to $61,682, after hitting an all-time of $68,874 earlier on Tuesday.
The move lower comes as some large investors, or so-called “bitcoin whales,” appeared to cash in on the record run. Still, sentiment remains supported by expectations that BTC is set for another run higher in the lead up to its halvening event expected in April.
A halvening event – that halves the number of bitcoins in circulation – occurs about every four years. Halvening events in both 2012, 2016, 2020 had preceded previous bull runs for BTC.
The record high seen in bitcoin followed the launch of a spot-based bitcoin exchange traded fund in January, stoking demand for the cryptocurrency among institutional investors. Recent data from BitMex Research showed bitcoin ETFs in the U,S. hold almost 4% of all bitcoin in circulation.
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