Bitcoin and other cryptocurrency prices sag

Bitcoin price continued its slide as the digital token slipped below $57,000 for the first time since October, in a retreat from record highs. The world’s largest and most popular cryptocurrency was trading over 6% lower at $56,328.8. Bitcoin recently hit a record high of around $69,000 and is up over 93% this year (year-to-date or YTD) so far.

Bitcoin has lost almost 20% in less than two weeks, proving that extreme volatility remains a hallmark of crypto investing. Yet in the world of Bitcoin, it’s largely business as usual with bullish conviction intact — in contrast to traditional markets where moves on this scale are met with alarm.

Global crypto market cap slipped to $2.6 trillion, according to tracker CoinGecko. Bitcoin has more than doubled this year, while Ether is up about sixfold. Both scaled records last week amid a fervor for digital assets driven by speculative demand and controversial arguments that they can hedge inflation risks.

Ether, the coin linked to ethereum blockchain and the second-largest cryptocurrency, also declined more than 4% to $4,075. Ether price has been trading around an all-time high, catching up with bitcoin’s rally and riding on news of wider blockchain adoption.

Meanwhile, dogecoin price plunged over 5% to $0.22 whereas Shiba Inu also crashed 10% to $0.000043. The performance of other cryptocurrencies like Litecoin, XRP, Polkadot, Uniswap, Stellar, Cardano, Solana also were trading with cuts over the last 24 hours.

Some analysts say a sharp pullback is normal after prices skyrocketed 40% in October. China’s crypto crackdown and new U.S. tax-reporting provisions that are being viewed as unfriendly to crypto investors have also soured sentiment.

Though, aficionados of digital assets are used to big swings and often undaunted by pullbacks. They often view Bitcoin as a modern-day store of value and inflation hedge, though such arguments are controversial.

Price swings of 20% or more aren’t uncommon among cryptocurrencies. After hitting a record of almost $65,000 in early April, Bitcoin slumped more than 50% by late June before turning higher again. After hitting nearly $53,000 in early September, it retreated about 25% over the next couple of weeks.