Business

Bitcoin extends gains, climbing above $32,000 as cryptocurrencies rebound from sell-off

Today News ||

A bitcoin sign with a graph pictured in the background.

STR | NurPhoto via Getty Images

Bitcoin and other cryptocurrencies recovered Wednesday after a brutal sell-off, with the world’s biggest digital coin climbing back above $30,000.

Ads

The price of bitcoin traded as high as $32,383 Wednesday, according to Coin Metrics, and last traded at $31,989, about 7% up on the day. Smaller cryptocurrencies ether and XRP also rebounded, up around 9% and 6% respectively.

The crypto market saw significant selling on Tuesday, with bitcoin falling below the $30,000 mark for the first time since June 22.

The plunge came on the back of news that the New Jersey attorney general issued a cease-and-desist letter to crypto lending firm BlockFi, ordering it to stop offering interest-bearing accounts.

The reason for the move higher Wednesday wasn’t immediately clear. Cryptocurrencies often undergo severe price swings. Bitcoin, for example, rallied to an all-time high of almost $65,000 in April before halving in value in the months that followed.

‘Dead cat bounce’

Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno, said Wednesday’s price move was likely a “dead cat bounce,” where an asset briefly recovers from a prolonged decline before continuing to slide.

Unless bitcoin can climb above $32,000-$33,000, Ayyar expects more downside, with the top cryptocurrency potentially tumbling as low as $24,000-$25,000.

“We saw broad market rallies across the board last night as well, and I think crypto is just playing off of that,” Ayyar told CNBC.

“In general, there are lot of macro factors weighing down on risk-on assets at the moment — inflation worries, Covid, and with crypto we’ve got more specific worries such as much more regulatory oversight.”

Regulatory pressure

More Economy Business News Updates of Today Check Below

Today News || Business Today || World News || Headlines Today || Health || Technology News || Education News

Source

Tags
Show More

Related Articles

Back to top button
Close