Bitcoin recovered considerably after plunging to its lowest in nearly four months on Wednesday.<\/p>\n
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.<\/p>\n
The last time BTC fell below this level was on January 28.<\/p>\n
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.<\/p>\n
This is the second time in recent months that the most popular cryptocurrency is displaying high volume volatility. <\/p>\n
Bitcoin had hit its all-time record of around $65,000 last month. <\/p>\n
Wednesday also marked the highest spot volume day for bitcoin with a daily volume of more than $14 billion on major crypto exchanges.<\/p>\n
Bitcoin’s weakness was clearly evident in the past 7 days, when it fell from a strong position of around $50000 day by day. <\/p>\n
Multiple factors are said to have influenced the deep fall in Bitcoin prices in the last 7 days.<\/p>\n
Reports of move by China to crack down on cryptocurrency and tweets by Tesla CEO Elon Musk sent Bitcoin tumbling.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Bitcoin’s market capitalization share is 44 percent of the greater crypto market. <\/p>\n
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. <\/p>\n