Bitcoin fell more than 5 percent on Friday, a day after it first reached $ 40,000.
The world’s most popular digital currency slipped to $ 36,618.36 on Bitstamp after reaching a record high of $ 40,402.46 in the previous session.
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Rival cryptocurrency ethereum sank more than 10% to $ 1,064.89.
Bitcoin rose more than 700% from its lowest level in March. It reached $ 30,000 for the first time on January 2, after surpassing $ 20,000 on December 1
Market participants had warned of a correction after it reached $ 40,000.
BITCOIN CAN HIT $ 146,000 AS A GOLD GAME FACTOR: JPMORGAN
Increased demand from institutional, corporate and recently retail investors has boosted the influx of bitcoins, attracted by the prospect of quick profits in a world of ultra-low yields and negative interest rates.
JPMorgan’s strategists wrote on January 5 that the digital currency has become a rival to gold and could trade up to $ 146,000 if established as an asset in a safe haven.
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(Report by Kevin Buckland; Edited by Himani Sarkar)