Key Takeaways:
- Cryptocurrencies stage a modest climb after heavy losses earlier in the week
- Bitcoin pushes near $35,000, up over 3% on the day
The price of bitcoin has been steadily climbing today after it hit a six-month low yesterday. Bitcoin slid to a bottom of $28,800 on Tuesday as market participants became increasingly worried over China’s hard line on cryptocurrencies.
What Caused The Previous Drop?
Bitcoin extended its drop on Tuesday, adding another 12% to the downside, on top of the 11% drop on Monday. During the seven days through Tuesday, bitcoin’s price declined over 30% on news that Chinese authorities have ordered miners in the Sichuan region to shut down their operations. Moreover, People’s Bank of China, the central bank of the country, issued a statement which prohibited banks and payment companies from participating in cryptocurrency activities of all sorts.
At its lowest price yesterday, bitcoin turned negative for the year by 1.5%. It also marked a drop of 55% from its all-time high in mid-April when the flagship cryptocurrency rallied to $64,800 per coin. The bottom on Tuesday was quickly scooped up by crypto investors and shortly after it traded below the $30,000-mark, bitcoin shot up and managed to end the day in the green. The world’s biggest digital currency closed Tuesday positive by 1% at $32,800.
Bitcoin Climbs Steadily Today. Why?
The crypto token approached $35,000 earlier today and is currently trading at $33,900, up 3% on the day, poised to log a second straight day of gains.
Other cryptocurrencies are also on their way to recovery today. Ether, which couldn’t turn positive on Tuesday, is up 3.4% today, trading near the $2,000 threshold. The token powering the Ethereum blockchain is floating 55% lower from its peak on May 12.
Dogecoin, the joke token largely favored by Elon Musk, has recently been in a continued decline. Ever since the Shina Inu-themed coin peaked at $0.75 in May, it has been losing value. On Monday, the crypto asset slipped as much as 42%. Although it has now recovered a bit from this week’s sell-off and is now trading near $0.22 a coin, Dogecoin remains more than 70% lower from its peak.
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