Bitcoin Aims to Regain $35,000, Struggles to Gain Traction
- Bitcoin has climbed about 20% from its low earlier in the week
- Cryptocurrencies attempt to resurface from Tuesday’s market sell-off
Bitcoin aims to regain $35,000 as it’s making progress towards higher grounds. Over the past two days, the biggest digital currency has advanced roughly 20% after the hit it took earlier in the week when Chinese authorities banned all mining operations in the Sichuan region and issued an order that prevented all banks and payment companies from dealing in cryptocurrencies in any way.
How Did Bitcoin React This Week?
At one point, on Tuesday, bitcoin slipped as low as $29,000, erasing all its 2021 gains. Today, however, bitcoin is trading about 20% higher as price hovers around $34,600. Bitcoin bulls are struggling to maintain the aggressive climb against the backdrop of regulatory restrictions in China and the recent shut down of Bitcoin mining processes in Sichuan, the second most-preferred Bitcoin mining area in China.
While bitcoin is higher by about 5% on the day, other cryptocurrencies are also attempting to stage a recovery. Ether rose roughly 3% to float right under the $2,000 mark, and Dogecoin is higher by 20%, trading above $0.27 per coin. Total market capitalization has grown by some $250bn since the crypto market sell-off on Tuesday.
Andreessen Horowitz & El Salvador Play A Role
In another sign that cryptocurrency demand from institutional investors remains strong, Andreessen Horowitz announced it has raised $2.2bn for its third crypto-focused fund. The venture capital firm that has invested in Coinbase and Facebook in their early stages said it has more than doubled its initial target of funding.
The Silicon Valley company stated the fund will be directed toward supporting “the next generation of visionary crypto founders”. The newest fund for the firm eclipses the previous two funds of $350mn and $515mn.
Meanwhile, El Salvador’s President Nayib Bukele said in a national address on Thursday that bitcoin would officially be legal tender on Sept. 7. Earlier this month, the small Central American country passed a legislation that stated bitcoin will be used as an official currency.
Payment in bitcoin, according to El Salvador’s President, will be optional. “Nobody will receive bitcoin if they don’t want it,” Mr. Bukele said. The country will continue to use US dollars as legal tender.
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