Bitcoin pulls back as record rally triggers profit taking

Bitcoin fell as traders cashed in after a record-breaking rally sent the top digital token above the $120 000 milestone.

Read: Bitcoin soars past $120 000 as US congress starts ‘crypto week’

The cryptocurrency declined as much 3.2%, the most in more than three weeks, and was trading at $117 386 at 12:40 p.m. in Singapore on Tuesday. Second-ranked Ether was down 1.4% and other smaller coins including XRP, Solana also dropped nearly 2% each.

The retreat came after Bitcoin surged past $123,000 for the first time on Monday, gains that were fueled by optimism about potential progress in US digital asset legislation that may advance President Donald Trump’s crypto-friendly agenda. The cryptocurrency also has benefited from a recent rally in other risk assets, including near-record high US stocks, as concerns about the economic impact of Trump’s new trade war eased.

Read: Markets so unfazed by tariffs that it’s making Trump bolder

“This is just a standard pullback after an overheating in the market,” said Stefan von Haenisch, director of over-the-counter trading in Asia Pacific for crypto custody firm Bitgo. The next key support level for Bitcoin is $114 000, a level that has previously triggered liquidation of a large amount of short positions, he added.

© 2025 Bloomberg

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