Bitcoin continued its downward movement after missing the psychological level of $61,000 earlier on Wednesday. The largest cryptocurrency then regained some of the lost ground as it found itself trading marginally above $62,900, still down 2.5%. compared to yesterday, according to CoinDesk data.

Bitcoin, which is up an impressive 124% year-to-date, hit record highs of $73,800 last week. The rise in the price of the largest cryptocurrency was supported by the launch of the related ETFs on the American market in January, but also by the upcoming “halving” in April (this is the process found in the bitcoin code, it takes place every four years and aims the slowdown of the circulation of cryptocurrency in the market). It is noted that traditionally, the “halving” process has supported cryptocurrency prices.

Overall, the cryptocurrency market has lost about $400 billion in value since bitcoin’s highs last week, with other cryptocurrencies (such as ether and Solana) also posting significant losses.

Part of the decline is attributed to profit-taking following the impressive rally in the cryptocurrency market.

Data from CryptoQuant shows a significant increase in bitcoin sales by short-term investors on March 12, aiming to take profit.

As Vijay Ayyar, vice president of global markets and development at cryptocurrency exchange CoinDCX, told CNBC, if bitcoin breaks below the $60,000 level, it could drop further and even test the $50,000-$52,000 levels.