Bitcoin's price rebounded on Monday after a 14 percent plunge over the weekend due to high leverage, profit-taking and strong expectations of new regulations — and some trading platforms even crashed under the volume.

After Bitcoin hit a record high of over US$63,000 last week, the cryptocurrency experienced a crash over the weekend to plunge to US$51,000 from US$59,000. Other cryptocurrencies including Ethereum and Dogecoin also fell dramatically.

The Bitcoin price gradually rebounded to US$57,000 by 4pm Chinese time on Monday.

The market lacks positive expectations after the record high, which caused a “sharp correction” said Xu Tong, a senior analyst at Huobi, a major Bitcoin trading platform.

The excessive accumulation of early profits on Bitcoin investment caused selling pressure. The Coinbase stock sales news also created panic .

Coinbase’s top executives sold shares immediately after the major cryptocurrency listed in the Nasdaq last week.

Turkey has banned trading of, and payment for, Bitcoin.

Another major reason for the big dump is high-leverage, which has been used in margin trading to pursue higher returns, according to KuCoin, an IDG-invested cryptocurrency trading platform.

“The market under high leverage is very fragile. Once the price drops, it will trigger more declines with panic among retail investors,” said KuCoin CEO Johnny Lyu.

During the weekend's plunge, Chinese Bitcoin investors found it difficult to access trading platforms, which caused substantial losses.

But the the rebound shows investors still have long-term confidence in Bitcoin.

Bitcoin's price rebounded on Monday after a 14 percent plunge over the weekend due to high leverage, profit-taking and strong expectations of new regulations — and some trading platforms even crashed under the volume.

After Bitcoin hit a record high of over US$63,000 last week, the cryptocurrency experienced a crash over the weekend to plunge to US$51,000 from US$59,000. Other cryptocurrencies including Ethereum and Dogecoin also fell dramatically.

The Bitcoin price gradually rebounded to US$57,000 by 4pm Chinese time on Monday.

The market lacks positive expectations after the record high, which caused a “sharp correction” said Xu Tong, a senior analyst at Huobi, a major Bitcoin trading platform.

The excessive accumulation of early profits on Bitcoin investment caused selling pressure. The Coinbase stock sales news also created panic .

Coinbase’s top executives sold shares immediately after the major cryptocurrency listed in the Nasdaq last week.

Turkey has banned trading of, and payment for, Bitcoin.

Another major reason for the big dump is high-leverage, which has been used in margin trading to pursue higher returns, according to KuCoin, an IDG-invested cryptocurrency trading platform.

“The market under high leverage is very fragile. Once the price drops, it will trigger more declines with panic among retail investors,” said KuCoin CEO Johnny Lyu.

During the weekend's plunge, Chinese Bitcoin investors found it difficult to access trading platforms, which caused substantial losses.

But the the rebound shows investors still have long-term confidence in Bitcoin.

Foreign investor confidence in China’s prospects continues to strengthen as the economy maintains restorative growth momentum, which drove up investment inflow in the first two months of the year, a Ministry of Commerce spokesperson said on Thursday.

In particular, foreign investment in high-tech industries registered notable growth as China accelerates its construction of a new development paradigm, spokesperson Gao Feng said. The new development paradigm refers to “dual circulation,” in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay.

He said that industries hit hard by the COVID-19 epidemic last year, including the hotel and catering sectors as well as wholesale and retail trade, saw a quick rebound.

Foreign direct investment on the Chinese mainland, in actual use, expanded 31.5 percent year on year to 176.76 billion yuan (US$27.17 billion) in the first two months, earlier ministry data showed.

In US dollar terms, inflow rose 34.2 percent year on year to US$26.07 billion.

Foreign investment in the services industry came in at 141.74 billion yuan during the period, up 48.7 percent year on year.

FDI on the Chinese mainland, in actual use, expanded 6.2 percent year on year to a record high of 999.98 billion yuan in 2020.

Meanwhile, China’s non-financial outbound direct investment went down 7.9 percent year on year in the first two months of 2021, official data showed. The ODI amounted to 99.38 billion yuan in the period, according to the Ministry of Commerce.

Foreign investor confidence in China’s prospects continues to strengthen as the economy maintains restorative growth momentum, which drove up investment inflow in the first two months of the year, a Ministry of Commerce spokesperson said on Thursday.

In particular, foreign investment in high-tech industries registered notable growth as China accelerates its construction of a new development paradigm, spokesperson Gao Feng said. The new development paradigm refers to “dual circulation,” in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay.

He said that industries hit hard by the COVID-19 epidemic last year, including the hotel and catering sectors as well as wholesale and retail trade, saw a quick rebound.

Foreign direct investment on the Chinese mainland, in actual use, expanded 31.5 percent year on year to 176.76 billion yuan (US$27.17 billion) in the first two months, earlier ministry data showed.

In US dollar terms, inflow rose 34.2 percent year on year to US$26.07 billion.

Foreign investment in the services industry came in at 141.74 billion yuan during the period, up 48.7 percent year on year.

FDI on the Chinese mainland, in actual use, expanded 6.2 percent year on year to a record high of 999.98 billion yuan in 2020.

Meanwhile, China’s non-financial outbound direct investment went down 7.9 percent year on year in the first two months of 2021, official data showed. The ODI amounted to 99.38 billion yuan in the period, according to the Ministry of Commerce.