Bitcoin recovered considerably after plunging to its lowest in nearly four months on Wednesday.
In a space of 24 hours that saw almost all cryptocurrencies lose their hold in the crypto market, Bitcoin’s value had reduced by more than 26 percent, from a high of $43,602 to $31,926.
The last time BTC fell below this level was on January 28.
However, trading exchanges breathed a sigh of relief Thursday, with Bitcoin reclaiming some of its lost ground. BTC is trading at $40474 at the time of writing this.
This is the second time in recent months that the most popular cryptocurrency is displaying high volume volatility.
Bitcoin had hit its all-time record of around $65,000 last month.
Wednesday also marked the highest spot volume day for bitcoin with a daily volume of more than $14 billion on major crypto exchanges.
Bitcoin’s weakness was clearly evident in the past 7 days, when it fell from a strong position of around $50000 day by day.
Multiple factors are said to have influenced the deep fall in Bitcoin prices in the last 7 days.
Reports of move by China to crack down on cryptocurrency and tweets by Tesla CEO Elon Musk sent Bitcoin tumbling.
China banned financial and payment institutions from providing cryptocurrency services and the People’s Bank of China reiterated that digital tokens cannot be used as a form of payment.
Bitcon had plunged by more than 17 percent last week after Elon Musk said that his car company will not accept the cryptocurrency while selling Tesla vehicles.
Bitcoin’s market capitalization share is 44 percent of the greater crypto market.
With Ethereum falling to as low as $1,850, and Dogecoin shedding its weight almost by half, losses in the market capitalization for the entire cryptocurrency sector is estimated at nearly $1 trillion.
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