Bitcoin tumbles 6% to below $53,000 while ether slides – as analysts warn of a correction in crypto markets

Bitcoin tumbles 6% to below $53,000 while ether slides – as analysts warn of a correction in crypto markets

The bitcoin price fell 6.2% to $52,975 on Wednesday, as retail interest slipped and the options market triggered volatility.

Bitcoin (BTC) was around 14% lower than the record high of close to $62,000 touched earlier in March. But it was still up around 690% over the last year.

Ether (ETH), the second biggest cryptocurrency, also slid around 6% to $1,614. Binance coin, polkadot, Cardano's ADA token and XRP were down between 3% and 13%.

Analysts suggested a key reason for bitcoin's fall was the more than $5 billion of options that expire on Friday, which is adding to volatility as investors close out their positions.

Options are contracts that let investors bet on which way the price will go, without having to trade the digital currency itself.

The unwinding of contracts and some investors trying to push the price lower to make money from their bets against bitcoin in the options market "have led to spot selling pressure into quarter end," Shane Ai, head of research and development at crypto exchange Bybit, told Insider.

He also said Tesla's announcement had started accepting bitcoin as payment - which saw the bitcoin price to spike above $57,000 - had caused some investors to sell their coins and make