Bitcoin recovers ground to touch $40k after crypto crash
Bitcoin today recovered some ground after sliding to a four-month low in the previous session.
The cryptocurrency shot up 8.75 per cent to touch $40,000 after plummeting 14 per cent yesterday to its lowest since January.
However, Bitcoin’s rebound was weighed down by concerns over tighter regulation in China.
The decline came after a statement by Chinese financial industry groups which banned institutions from offering cryptocurrency registration, trading, clearing and settlement.
While Beijing has taken steps before to block access to cryptocurrency exchanges, its latest statement was broader.
Bitcoin had already been under pressure for almost a week after a series of tweets from Elon Musk, including his reversal on Tesla accepting Bitcoin as payment.
Chris Weston, head of research at brokerage Pepperstone, noted that $9.13bn of cryptocurrency positions had been liquidated across exchanges over 24 hours.
“It’s too early to say if the rebound we’ve seen off the lows in crypto has legs, but as we roll into Asian trade, I question if we will get a chance to catch our breath or is there more volatility in store?” he said.