After a slight drawback in crypto prices, digital coin value seemingly recovered on Wednesday after all-day moderate fluctuations. All-star cryptos are trading in green once more, and it seems that sentiment is experiencing improvement in spite of high volatility.
The most popular crypto coin out there, Bitcoin, bounced back a bit, precisely 3 percent higher than the previous day. It still isn’t close to its previous glory, which is partially influenced by Elon Musk’s comments and China’s crackdown. It seems that Bitcoin also dubbed digital gold faces a struggle to regain its $40k mark caused by exceptionally high volatility.
BTC price fell sharply last Tuesday, after an initial rise in the morning. The downtrend was caused by China’s northern region of Inner Mongolia’s cautiously thought out campaign that
protested against cryptocurrency mining. Afterward, a list of drafted rules was published trying to stop the business, days after Beijing made an announcement to eliminate Bitcoin mining, along with trading. It’s crucial to take into account that China’s crackdown might be the biggest reason why the cryptocurrency weakened throughout the markets at the moment.
Despite the fact that China banned cryptocurrency trading back in 2017, some research suggests that the most significant portion, as much as 70 percent of the global crypto supply, actually belongs to China. The crackdown changed the game entirely, though, and might have disrupted those high numbers.
Regardless of the crackdown that made tectonic changes in the cryptocurrency world, Bitcoin and other popular coins haven’t gotten to a point where they fell utterly. As long as they have prominent backers like Tesla CEO Elon Musk, who proclaims solid and positive opinions on the said currency, these coins will not fall through the cracks. Musk posted a tweet where he shared that he is talking to Northern American miners regarding the sustainability problem, which poses a bigger issue every day.
Bitcoin is still struggling to regain its previous high figures (with an ATH pinned at $64,941) and the $40k mark, but it seems as if it’s going to get there soon enough. Ethereum (Ether), on the other hand, appears to be recovering more quickly than BTC. Even though the chart patterns of these two coins seem to be going in the same direction, with different numbers, ETH is surging back to its previous highs with greater ease.
The second most popular coin gained a bit over 8 percent since the crackdown, steadily going towards $3,000. It still remains far from the all-time high it reached earlier this month. When it comes to other popular cryptocurrencies in the game, such as Cardano, Ripple, Chainlink, Litecoin, and Stellar, they all gained since Wednesday.
Bitcoin and Ethereum, with a combined market cap of nearly two-thirds of all crypto assets, have been spiraling lately, which investors might take as a sign to sell and run. However, the fact that the market already shows signs of recovery tells us that this drop might be temporary. We can’t time the market, and potential market disruptions can occur in the future as well, given that this is an entirely new asset class. The only thing we can do is sit back, watch the charts and news closely, and wait for the next shift in the markets.