Bitcoin price falters after breaking through technical barrier

Bitcoin prices sank on Sunday morning, while ethereum continued its rally. Photo: STRF/STAR MAX/IPx 2021 4/14/21

Bitcoin (BTC-USD) came off two-week highs on Sunday morning, falling as much as 2.5% in London by 9.30am.

On Friday, it had surpassed a closely-watch technical hurdle, which is usually a precursor to further gains. It had climbed past its price average over the past 50 days which is usually seen as a measure of momentum.

The moves also came as crypto-watchers digested a leaked blog from banking app Revolut, first spotted by AltFi at the end of last week, which showed it is preparing to allow some users of its premium products to transfer bitcoin holdings off the app. 

This would challenge the status quo set by other platforms such as Robinhood and PayPal (PYPL), that prevent bitcoin bought on their platforms being moved elsewhere. 

Trading has been volatile in recent weeks after the token moved past $64,000 in mid-April. On Sunday morning it was trading at around $56,380 (£40,806). 

Bitcoin's price faltered on Sunday morning in London. Chart: Yahoo Finance UK

Bitcoin’s price faltered on Sunday morning in London. Chart: Yahoo Finance UK

The volatility was a precursor to the listing of cryptocurrency trading platform Coinbase. In April, Coinbase (COIN) became the first major crypto firm to list on the Nasdaq (^IXIC).

Bitcoin’s price has been sensitive in recent months as governments and regulators have focused in on the sector.

READ MORE: ‘Britcoin’: Central bank digital currencies explained

Meanwhile, ethereum (ETH-USD) was up 1.6% on Sunday, compounding gains from a rally on Thursday which saw it cross the $2,700 mark. The European Investment Bank (EIB) announced it will launch its first-ever digital bond on the crypto’s blockchain network. On Sunday it was trading at $2,870. 

EIB, the lending arm of the European Union, used ethereum technology to issue €100m (£86.8m, $121m) in two-year digital notes bonds, working in collaboration with Goldman Sachs (GS), Santander (SAN) and Societe Generale (GLE.PA).

This may have given ethereum a boost as it inches towards $3,000.

Watch: What are the risks of investing in cryptocurrency?