Bitcoin hints at Recovery after Crash: It Traded above ,000

Bitcoin hints at Recovery after Crash: It Traded above $42,000

The Bitcoin, the most widely used cryptocurrency, recovers after Wednesday’s crash and traded above USD 42,000 on the afternoon of this Thursday.

The cryptocurrency, which fell in the previous session more than 11%, reached a intraday loss of more than 25% in the morning, when buy orders burst in at a time when many retail investors were watching the quotes on crypto platforms with alarm.

Bitcoin fell just above the $ 30,000, 54% below its record April and the lowest level since late January. Anyway, so far in 2021 – and despite the volatility – it defends a gain of 38 percent.

To the doubts generated in recent days by the statements of the founder of Tesla, Elon Musk, joined the position of the People’s Bank of China (the central bank of the Asian country) of not accepting cryptocurrencies as a form of payment in the financial system, although without prohibiting the holding of individuals in the portfolio.

In addition, the financial stability report of the European Central Bank (ECB) insisted that Bitcoin is a “risky and speculative” asset.

In the same vein, the central bank Argentine and the National Value Comission issued a joint communication in which they warned about the risks of investing in crypto assets and drew up a series of recommendations for investors.

The authorities and market regulators of the central countries do not stop looking with some suspicion at the volume of operations in cryptocurrencies and the dizzying price dynamics, both up and down.

As reported Bloomberg, the US Treasury indicated that the president’s proposal Joe Biden to strengthen tax compliance in the North American country includes a requirement so that transfers of at least $ 10,000 in cryptocurrencies are reported to the Internal Revenue Service (IRS).

Even assuming the strong loss of this week, Bitcoin maintains a gain close to 40% so far in 2021

On May 13, Bitcoin crashed after Elon Musk announce on Twitter that Tesla will stop accepting payments with that cryptocurrency for its environmental impact.

Last Sunday, the cryptocurrency again suffered a strong correction after another tweet by the South African businessman that some interpreted as an indication that Tesla had sold or was about to sell the Bitcoin it had bought in February.

Cryptocurrency partially recovered on Monday after Musk himself denied, also through a message on his Twitter account, that Tesla had sold his Bitcoin.

In February, the most used cryptocurrency soared following Tesla’s decision to invest $ 1.5 billion in Bitcoin. Days later, this cryptocurrency, which represents about half of the market, suffered a sharp decline after a tweet from Musk in which he suggested that this cryptocurrency could be overvalued.

Nevertheless, Bitcoin regained its bullish streak and hit an all-time high of $ 64,869 on April 14.

On the other hand, Ether, the issuance of Ethereum and the second most used cryptocurrency, rises almost 16% in this round, after having plummeted 26% on Wednesday. The cryptocurrency of the Ethereum network is around $ 2,930.

Samuel Edwards
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