Bitcoin slides below $35,000 as crypto mania loses momentum

The Bitcoin fever is starting to break as worries about a market bubble discourages investors from buying in.

Prices for the largest cryptocurrency dipped as much as 6.8% on Wednesday and traded below $35,000. Ever since the market shot through all-time highs in early January, Bitcoin has been beset by volatility and skepticism that the run-up has been excessive.

Analysts have pointed to $40,000 as the key level that Bitcoin needs to surpass in order to draw fresh money from investors riding cryptocurrency momentum. They argue that recent gains could prove fleeting if the rally stalls and traders looking for quick returns shift their money elsewhere.