Bitcoin fell after a record surge that pushed the largest digital token above the $120,000 mark, UNN reports with reference to Bloomberg.
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The cryptocurrency fell 3.2%, its biggest decline in more than three weeks, and traded at $117,386 by 12:40 p.m. Singapore time on Tuesday. Ether, the second-largest, fell 1.4%, while other smaller coins, including XRP and Solana2, also fell by almost 2%.
The pullback came after Bitcoin first rose above $123,000 on Monday. The rally was driven by optimism about potential progress in US digital asset legislation, which could advance US President Donald Trump's crypto-friendly agenda. The cryptocurrency also benefited from a recent rally in other risky assets, including near-record high US stocks, amid easing concerns about the economic consequences of Trump's new trade war.
"This is just a standard pullback after an overheated market," said Stephan von Henish, director of OTC trading for Asia-Pacific at crypto custodian Bitgo Inc.
He added that the next key support level for Bitcoin is $114,000 - a level that previously triggered the liquidation of a large number of short positions.