Bitcoin rose on the morning of Wednesday (23), after sinking below $ 30,000 and reaching the lowest price of 2021, yesterday (22). The cryptocurrency was accelerating above $34,000 toward the value it traded in the four weeks before it plummeted. Around 10:00 am (GMT), the world’s largest digital currency advanced 4.9% to $34,199. (Bitcoin soars again after plunging)
Investors seem to be rediscovering their love for Bitcoin, as the price of the cryptocurrency surged to a new all-time high on Tuesday.
Bitcoin hit an eye-popping $65,000 per coin before falling back to around $61,000, according to CoinMarketCap. That’s still up more than 6% from its price just 24 hours ago.
The renewed interest in Bitcoin comes after a brief dip earlier this year. The cryptocurrency plunged to its lowest price in 2021 in mid-May, dipping below $30,000 per coin at one point. But it seems that investors have once again found faith in Bitcoin’s long-term potential.
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However, the digital currency has been on a roller coaster since early May due to a series of negative news. The main impetus came from regulatory news in China. In yet another chapter of the soap opera of years of conflict, the country’s central bank ordered banks and payment platforms, such as Alipay, of the giant Ant Group, not to provide services related to the cryptocurrency trade.
The monetary authority stated that speculative activities are disrupting the Asian power’s financial system and creating risks of illegal capital outflows. China is home to much of the world’s mining industry for these assets.
Recent news from the US also heightened the fear of regulation. There were signs that the SEC (the acronym in English for the market regulator, equivalent to the CVM in Brazil) should not authorize new formats for investments in digital currencies soon.
After plunging to its lowest price in 2021 just a few days ago, bitcoin is soaring again.
The digital currency hit a low of $30,201 on January 15, before rebounding to $37,533 on Saturday, according to data from CoinMarketCap. That’s a more than 23% jump in the span of just a few days.
Bitcoin’s latest rally comes as investors remain bullish on the prospects for cryptocurrencies despite some headwinds.
One factor that could be driving bitcoin’s recent price surge is increased institutional interest in the asset. For example, last week it was announced that hedge fund manager George Soros’ investment firm is investing in bitcoin.
Environmental concerns have also become a new point of attention for cryptocurrency, after Elon Musk, president of electric car company Tesla, suspended the use of digital currency as a means of payment for vehicles and said the pause would remain in effect as long as most of the mining activity uses fuels from non-renewable sources.
Musk has been a strong voice in the ecosystem of these assets, particularly since the company announced a $1.5 billion investment in bitcoins in 2020. More recently, the electric car maker’s president said Tesla could rejoin cryptocurrency payments if digital currency mining becomes more environmentally sustainable.