Nearly $4 billion has been wiped off of the value of bitcoin in the past four days after a correction that has seen the cryptocurrency`s price fall almost 19 percent from its recent record high.
On May 24, bitcoin hit an all-time high of $2. But on Monday, the digital currency was trading at an intra-day high of $2,267.73, marking a more than $520 drop or 18.7 percent decline since the record high, according to data from CoinDesk.
"The correction was actually quite brief, the prices today are still higher than that of a week ago," Bobby Lee, CEO of BTCC, a major bitcoin exchange, told CNBC by phone.
"I think the pullback was just a profit taking, a correction from the skyrocketing prices of last week."
Bitcoin`s market cap fell from $40.49 billion on Thursday to around $37.08 billion on Monday, a roughly $3.4 billion decline in value.
Last week, Nicola Duke, a technical analyst at analysis platform Forex Analytix, told CNBC that $2,800 could mark a level of resistance where bitcoin pulls back. The analysis appeared to be correct with bitcoin reaching within $9 of the price before falling to the lower levels on Monday.
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