⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Bitcoin rebounds after drop below $30,000

Published 06/23/2021, 08:29 AM
© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin rebounded above $34,000 on Wednesday, a day after the sell off which saw the price drop below $30,000 for the first time since January.

There were some fears that a drop below $30,000 would have opened the doors to further weakness, with some analysts forecasting a drop below $20,000, but that scenario has not played out so far.

Instead, after dropping below $29,000 yesterday, Bitcoin and other major cryptocurrencies have staged a rebound.

“It has probably weathered the storm in the near term, and I'll pick some numbers out of the matrix and say $30,000 to $40,000 will cover the rest of the week/weekend,” said Jeffrey Halley, Senior Market Analyst at OANDA.

Bitcoin has had a rollercoaster year, hitting a high near $65,000 in April before paring back to its current level amid slowing institutional adoption and prospects of tighter regulation in the cryptocurrency market.

The latest crackdown in China was the likely catalyst for the sell off earlier this week as mining companies in Sichuan province were forced to shutter their doors and the PBoC warned some banks and payment firms to stamp out transactions related to digital assets.

The environmental impact of cryptocurrency mining and transactions has also recently weighed on prices after Tesla (NASDAQ:TSLA) CEO Elon Musk said his company would stop accepting Bitcoin due to the energy use of the network. It is estimated the Bitcoin network uses as much power as a country the size of Sweden or Argentina.

With companies under pressure to satisfy ESG investors, firms may be more cautious about holding or dealing in Bitcoin and other energy intensive crypto assets.

At 13:08BST, Bitcoin was trading around $33,900, up 8.3% in the last 24 hours. Ethereum, the second largest cryptocurrency by market cap, was trading around $2,000 after hitting a low near $1,700 on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.