The bulls are stepping in again after a critical week in the cryptocurrency market. The feature of the volatility of digital assets was illustrated well enough recently as Bitcoin and almost all altcoins tumbled from high positions. Though BTC isn’t yet at its best, it is gradually rocketing back up and has regained the $34k spot.
It is no longer news that the foremost digital asset went down the slide yesterday, licking the dust under $30k. The value which is the worst since January occurred only within the space of 48 hours. While some analysts felt this could be the beginning of Bitcoin’s woes, the digital coin miraculously regained $5,000 on Wednesday.
Altcoins would always be influenced by BTC and true to this notion, they are gradually making their way to recovery. Ethereum which went down to $1,700 has regained $300 today.
Binance Coin in the same narrative lost $100 yesterday to hold a position at $220 but has recovered to $340. Cardano, XRP, Dodge, and Polkadot performed better as the crypto market cap shot up by $200 billion.
What Could be Wrong With Bitcoin?
No one can say for sure what is pulling Bitcoin’s value down at almost every turn. The digital asset is the worst hit from issues relating to governmental policies, environmental concerns, and criminal intentions. The recent concerns are attributed to the mining crackdown in China.
As relating to the energy consumption of BTC, the CEO of MicroStrategy Micheal Saylor alongside concerned miners in North America has set up a Bitcoin Mining Council. This follows after Elon Musk raised environmental concerns about the Bitcoin mining process.
The notion that Bitcoin would become a tool for financial crimes like money laundering and gambling poses a threat to regulatory bodies. Countries like India and China are not sparing any chances as they continue to place restrictions on crypto trading.