(Bloomberg) — Cryptocurrencies fell on Tuesday, with Bitcoin briefly dipping below $60,000 and Ether touching its lowest level this month, in a broad-based retreat from recent record highs.
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The largest digital token whipsawed traders, dipping as much as 8.2% before cutting the decline by around half. The slide to $58,661 was the biggest intraday drop since Sept. 24. Second-ranked Ether tumbled more than 10% before also paring losses. Global crypto market cap has dropped some 10% in the past 24 hours to $2.7 trillion, according tracker CoinGecko.
“After several days of gains, which saw Bitcoin hover near its all-time high as many other altcoins managed to reach new highs, we are seeing a significant pullback,” said Walid Koudmani, an analyst at XTB Market. “The extreme volatility that the market is prone to could lead to a potential domino effect if more negative news were to emerge and take prices to new lows.”
Crypto-centric stocks also took a hit, with shares of Coinbase Global Inc., a crypto exchange, falling roughly 4% at one point. MicroStrategy Inc., Marathon Digital Holdings Inc. and Riot Blockchain Inc. all also dropped.
Technical indicators had suggested the strong run of late across the notoriously volatile market was due for a pause.
Some analysts also attributed the dip to new tax-reporting requirements for digital currencies that are part of the $550 billion infrastructure bill, which President Joe Biden signed into law…