Bitcoin price drops to two-week low at $113,000 as traders lock in profits

Bitcoin, the world’s largest cryptocurrency by market capitalisation, has dropped to about $113,000 — its lowest level in two weeks.

The price traded 1 percent lower on Wednesday, falling to $113,860 as at 9:37 am, according to data from CoinMarketCap.

Ethereum, the second-largest cryptocurrency, also slipped marginally by 0.1 percent to $4,232.

CoinMarketCap data further showed that the global cryptocurrency market cap shrank to $3.92 trillion, with more than $160.41 billion traded during the same period.

Since the beginning of the year, bitcoin’s value has soared, supported by regulatory reforms under US President Donald Trump, a vocal supporter of the digital asset sector

Bitcoin, in July, vaulted past $120,000 for the first time, rising more than 3 percent to register a record high of $123,153.

Earlier in August, the cryptocurrency fell as low as $113,620 before picking up again.

On August 14, bitcoin surged past $124,000 following favourable legislation and a rally in US equities.

The gains were driven by the S&P 500 and the tech-heavy Nasdaq closing at record highs.

The sudden, drastic drop in price, according to CoinDesk, started when traders started selling to lock in profits, and worries about the economy, as well as risky borrowed trades, made the market jittery.