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Bitcoin, which accounts for over 45% of the global crypto market, was trading around $ 33,000 per coin Sunday morning Eastern Time, a far cry from its all-time high above 64,000 a short while ago more than a month. By Sunday evening, Bitcoin had recovered some of its losses. It was trading at over $ 35,000, according to Coindesk.
Tesla CEO Elon Musk, whose tweets regularly influence the crypto market, highlighted his support for digital currencies on Saturday, giving bitcoin a slight boost after a very eventful week. “The real battle is between fiat and crypto. Overall, I support the latter,” Musk wrote on Saturday morning. Bitcoin topped $ 38,000, but on Saturday night it started falling again.
Other cryptocurrencies also fell over the weekend. Ethereum was down 20% on Sunday morning, trading around $ 1,900. Dogecoin fell 16% and binance currency fell 26%. (The cryptocurrency markets remain open 24 hours a day, seven days a week.)
A massive crypto crash on Wednesday wiped out around $ 1 trillion in market value. The sale began after Chinese authorities announced new restrictions on cryptocurrency transactions within its borders.
Beijing’s statements scared an already nervous crypto market, and bitcoin plunged 30% to $ 30,000, its lowest point since January. Ethereum fell over 40%, and dogecoin and binance fell around 30%.
U.S. regulators have also hinted at restrictions, with the Treasury Department announcing that any transfer of digital currency valued at $ 10,000 or more must be reported to the Internal Revenue Service.
This kind of volatility in the crypto industry is nothing new, but as digital coins become more common, their fluctuations are increasingly gaining the attention of U.S. investors and businesses.
The recent spate of losses began on May 12, when Musk flip-flopped on Tesla’s pledge to accept bitcoin payments, citing environmental concerns.
Even with last week’s losses, bitcoin is still up over 250% from last year.
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