Bitcoin rose fell 0.4% against the US dollar early Monday, hovering above the $56,000 mark.
Bitcoin had tumbled because of “some countries like Turkey making noise about banning Bitcoin as a payment methodology and also talk of further scrutiny by the US Treasury,” said Brad Bechtel, global head of FX at Jefferies.
“Big Tech is also developing their own versions of cryptocurrencies,” said analysts at Action Economics in a note to clients. “All this represents significant future competition for the likes of bitcoin.”
At the same time, the cryptocurrency still has plenty of bullish backers.
“We don’t think any of these factors change the fundamental story for Bitcoin which still seems supported by constrained supply and broadening institutional and retail investor adoption,” wrote Win Thin, global head of currency strategy at Brown Brothers Harriman, in a note.
The US dollar index also fell Monday, with the greenback dropping 0.5% against a basket of its rivals.