Bitcoin and other cryptos recovered this Wednesday after a short sell-off, with the world’s top digital cryptocurrency reaching back over $30,000.
The price of bitcoin went as high as $32,765 this Wednesday, according to the website Coin Metrics, and last sold at 31,641, around 6% higher on the day. Smaller cryptos ether and XRP also returned with around 6% each.
The crypto market witnessed greater selling this week on Tuesday, with bitcoin declining under $30,000 for the first time since June 22nd.
The decrease came after news that the NJ A.G. gave a cease-and-desist message to crypto lending company BlockFi, ordering them to stop giving interest-bearing accounts.
The cause for the move higher Wednesday was not immediately clear. Cryptocurrencies usually have severe price swings. Bitcoin, for example, went higher to an all-time high of nearly $65,000 in the month of April before splitting in value in the months after.
The price of ether increased around 1.5% in the afternoon after Elon Musk says he has some of the cryptocurrency, in addition to bitcoin and dogecoin, during the online event called “The B Word.”
Vijay Ayyar, leader of Asia-Pacific at crypto exchange Luno, said Wednesday’s rise was possibly a “dead cat bounce,” where an asset momentarily recovers from a prolonged decrease before sliding more.
Unless bitcoin can get higher than $32,000-$33,000, Ayyar says he expects more downside, with the top crypto possibly going as low as $24,000.
“We witnessed broad market rallies last night as well, and I believe crypto is only playing off of that,” Ayyar said.
“In general, there are many macro factors pushing down on risk-on assets right now — inflation, Covid, and with cryptocurrency we have worries like more regulatory oversight.”
Cryptocurrencies have been going down during an increasing crackdown on the technology and industry from regulators.
In China, authorities have tried to remove cryptomining, the technique that processes transactions and creates new coins. Binance, the world’s top crypto exchange, is coming under more pressure from regulators in Italy, the U.K. and elsewhere.
Author: Blake Ambrose