Bitcoin Price Bounces Back From Cryptocurrency Shocks Market
Prices for bitcoin, ether and other cryptocurrencies found some breathing room on Thursday, following a frenzied sell-off that dealt a blow to investors swept into a euphoric rally since the end of the year. ‘last year.
Bitcoin recovered nearly 5% to $ 40,245.47 on Thursday. It had fallen more than 11% by 5 p.m. ET on Wednesday, after plunging nearly 30%. Dogecoin, the cryptocurrency that started off as a joke, rose more than 12% on Thursday after falling 27% the day before, while ether rose 7% after falling 26%.
This week’s crypto crash helped erase nearly 40% of the price of bitcoin from a high of nearly $ 65,000 in mid-April. Some fear that the worst is far from over. The rapid fall forced many investors to unwind bets made with borrowed money, adding to price pressure for a wide range of cryptocurrencies.
Highly volatile digital coins had retreated for weeks before Wednesday’s collapse, which was triggered by regulatory restrictions in China. But investors have pointed to the build-up of highly volatile borrowing that has hampered the prices of various digital assets.
Concerns over the amount borrowed against Bitcoin to invest in other crypto assets led Ruffer LLP to sell its bitcoin holdings in April, according to Matt Smith, director of the London-based company’s Total Return Fund.