Bitcoin drops below $4000 as profit-taking continues

Following the record-setting rally last week, bitcoin is looking to close the second day in a row with losses. The fact that no fundamental catalysts were seen behind that move suggests that investors are taking their profits off the table. As of writing, the BTC/USD pair is trading at $3995, losing 3.4% on the day. On the other hand, bitcoin cash, which recorded its best weekly percentage gain last week since its introduction, lost nearly 20% on Monday.

Regardless of today's retreat, cryptocurrencies'^market capitalization rose above the $145 billion for the first time on Monday. Kit Juckes, Global Head of FX Strategy at Societe Generale, in a recent report, wrote, "it's a feature of the low-inflation era that very few governments or central bankers want a strong currency. That's just one reason why Bitcoin is doing so well. Strong currencies depress inflation, at least temporarily, and if their impact on competitiveness is exaggerated, it's still enough to make them take the blame for jobs being lost to other cheaper-currency producers."