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Cryptocurrencies bounce back from Sunday sell-off, bitcoin still down 30% in May

Berita 24 English -  After suffering a sell-off on Saturday, bitcoin (and other cryptocurrencies) rebounded over the course of the following...

Berita 24 English - 
After suffering a sell-off on Saturday, bitcoin (and other cryptocurrencies) rebounded over the course of the following trading day and Monday, experiencing a more than 10% increase in price.

Bitcoin, the world's largest cryptocurrency, rose by 12% to $39,400 in the past 24 hours, reversing losses from the day before and trimming about 40% from recent highs.

Ether jumped nearly 19% to $2,491 on Sunday after falling nearly 8% over the previous day. Even though it's lost almost half of its value since the beginning of this month, it's still lower than before.

Following several tweets from Elon Musk that appeared to put the brakes on his previous criticism of Bitcoin's environmental impact, Bitcoin went on to increase in value by the end of the day on Monday. He made a claim on May 12 that because of the bitcoins' use of fossil fuels during the mining process, Tesla would no longer accept the cryptocurrency.

"I spoke with Bitcoin miners in North America. They decided to publish current and planned renewable usage and ask miners if they would include that data in their records. possibly beneficial. "Musk's response was to write.

Following the increased interest in cryptocurrencies, policymakers have stepped up their response in the past week. On Monday, Federal Reserve Governor Lael Brainard spoke to a virtual conference organized by CoinDesk and said that there was a growing focus on CBDCs (central bank digital currencies) because of the surge in private money, digital payments, and the steps taken by other central banks.

While her comments did not move the price much, she did warn of the potential for "run-like behaviour" with the widespread use of private money.

Later in the day, Atlanta Fed President Raphael Bostic echoed her comments.

"This thing is moving quickly. At the moment, in the crypto space, the market is extremely volatile, and as such, I don't think it's the ideal environment for currencies, "he declared.

When portfolio manager Paul Nolte of Chicago-based Kingsview Asset Management said, "The trend we're seeing is a step in the direction of mainstream acceptance. Even though cryptocurrencies will need to be regulated and have rules imposed on them to be widely adopted, that is what is causing the short-term volatility in the cryptocurrency markets at the moment."

This year, Bitcoin has risen approximately 35% but fallen approximately 40% from its all-time high of $64,895.22 on April 14.

At Coindesk's Consensus conference on Monday, billionaire investor Ray Dalio stated that he holds bitcoin at the event.

Founder Richard L. Carranza did not provide any further details. Still, he said in the face of the rapidly growing debt in the United States and increasing competition from China, the U.S. dollar is experiencing pressure and diversification is a priority.

He went on to add, “bitcoin's greatest risk is that its success could pose a threat to the traditional monetary system.”

In a pre-recorded interview from May 6, he told reporters, “I'd rather have bitcoin than a bond.


The cause of the fall on Sunday was miners, known as cryptocurrency "miners," who produce new cryptocurrencies by utilizing supercomputers to solve complex math problems. They stopped operating in China after they experienced increased scrutiny from the government.

Mining is currently a major source of cryptocurrency production in China, accounting for 70% of the total supply.

Following this, on Monday, the cryptocurrency exchange Huobi announced that it would stop offering both mining and trading services to new clients from mainland China and instead focus on clients outside of China. Additional businesses also closed in China.

The price may drop in the short term, market players believe, as miners liquidate bitcoin on their balance sheets.

The cryptocurrency market players predict that fears over the Chinese crackdown will last.

While Joseph Edwards, the CEO of crypto brokerage Enigma Securities, is careful not to predict anything with certainty, he said nobody knows what comes next. "When it comes to the narrative, Crypto finds itself in a tough position right now. And it has drawn a lot of attention away from the topic."

Bitcoin regained its footing from a challenging week at the beginning of the weekend after Tesla founder Elon Musk - whose comments on cryptocurrencies have been a significant price driver in recent months - tweeted in support of crypto.

Despite last week's 25% price drop, bitcoin is still more than 40% below the all-time high of $64,895, which was set before the Chinese regulatory warnings.

At this point, it is too early to predict the end of the recent bitcoin price decline, according to JP Morgan analysts.

According to a research group, several publicly listed bitcoin funds saw outflows of more than $530 million last week.

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