Investing.com -- Bitcoin fell on Wednesday, as traders appeared to take profits at the $13,000 mark following a dramatic two-day rally.
Bitcoin fell 2.50% to $12,208, from a session high of $13,134. Still, the crypto remains about 12.4% below its year-to-date high of $13,929. A fall below $10,000 last week attracted a wave of buying interest.
Sentiment on bitcoin remains bullish with some eyeing a further test of the year-to-date highs. A July close above its year-to-date high could pave the way for another rally.
The rally in bitcoin has mainly been led by institutional investors, especially hedge funds, many of which are underperforming key indices due to their risk-averse nature.
“Macro managers and high net worth individuals are generally, in my experience, focused almost entirely on Bitcoin,” said Fundstrat Global Advisors' Thomas Lee.
Other cryptos also trended lower, with XRP falling 8.34% to $0.36278, Ethereum down 7.69% to $287.37 and Litecoin slipping 10.39% to $107.81.