The price of bitcoin surged above the $40,000 level over the weekend for the first time since mid-May, but the rally started to stumble Sunday.

Bitcoin
BTCUSD,
-4.00%

peaked above $42,000 on Saturday, according to Coindesk data, but by Sunday evening, had retreated to around the $39,600 level.

The world’s largest cryptocurrency has surged since dipping below $30,000 on July 20, partly because investors see it as a hedge against inflation and currency values if and when the Federal Reserve starts tapering its $120 billion-a-month asset purchases.

Other cryptocurrencies followed bitcoin’s lead, falling Sunday after a streak of daily gains. Ethereum
ETHUSD,
-0.75%

was recently trading off about 5% on the day, while dogecoin
DOGEUSD,
-3.17%

was down about 3.5%, according to Kraken data.

While bitcoin is about flat over the past five days, it’s up 14% over the past month, and up 38% year to date, even though it’s off around 40% from its all-time high around $65,000 in April.

LEAVE A REPLY

Please enter your comment!
Please enter your name here