Bitcoin and other cryptocurrencies rebounded on Wednesday after a massive sell-off, with the world’s biggest digital coin recovering back over $30,000.
- The price of bitcoin increased by 6.9% in the last 24 hours to $31,539 at 10a.m ET. Smaller cryptos ether and XRP recovered, increasing by 9% and 6% respectively.
- The crypto market plunge became news after the New Jersey attorney general ordered crypto lending firm BlockFi to stop providing interest-bearing accounts.
- The reason for the rebound on Wednesday is still uncertain. Cryptocurrencies are volatile and undergo a flurry of price swings.
- Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno describes the upward price movement as a dead cat bounce, where an asset recovers slightly from prolonged decline before continuing to slip.
- Ayyar expects further price drop, with major cryptocurrency potentially slumping as low as $24,000-$25,000.
Cryptocurrencies are likely to continue with a downward trajectory amid growing crackdown from governments and regulators across the world.
BTC USD gains +6.77%, ETH USD gains +7.81%, XRP USD up +6.10%