Bitcoin drops back to $38,000 as cryptos fall again

The environmental impact of crypto has been a major concern lately. Photo: Getty Images

Cryptocurrencies recovering from a weekend sell-off are falling again as Iran bans mining for four months.

Bitcoin (BTC-USD) was down 5.6%, trading at $ 38,226 (£ 27,060) on Thursday morning. On Wednesday it had managed to surpass $ 40,000, although it is still a long way from hitting the all-time high of $ 63,000.

Ethereum (ETH-USD), the second largest cryptocurrency by market capitalization, fell about 5% to trade at $ 2,737. Joke Token Dogecoin (DOGE-USD) fell 6% to trade at $ 0.33.

Iran said it bans the high-energy mining of cryptocurrencies after power outages occurred in some of its cities. This may have been due to a drought that affected hydropower generation, but the cryptocurrency was consuming more than 2 GW from the grid every day, the country said.

The environmental impact of cryptos has been a major concern lately, and North American bitcoin miners are working to make their energy use more transparent.

Continue reading: How bad is bitcoin for the environment?

“Bitcoin’s energy consumption, and particularly the percentage of electricity it uses from renewable sources, has generated a lot of fear, uncertainty and doubt lately. So it’s a good thing for mining companies to volunteer publicly as long as they’re not trying to force changes to the protocol, without first reaching broad consensus across the network, “said Mati Greenspan, CEO and founder of Quantumeconomics.io.

In the meantime, Bitcoin is getting more and more attention. Carl Icahn, a noted New York activist, told Bloomberg that he wanted to “get into cryptocurrency in a big way” and could at some point invest more than $ 1 billion in an alternative currency.

Bitcoin collapsed on Wednesday morning. Graphic: Yahoo Finance

And regulatory filings show that Fidelity Investments’ first bitcoin fund has raised $ 102 million from investors since it was launched in August.

“Bitcoin appears to have found near-term support of around $ 35,000, but that doesn’t seem like a clear reversal just yet,” said Michael Stark, research analyst at financial services firm Exness.

The story goes on

“The nervousness in the crypto markets remains high and traders seem less keen to catch the knife than they did in the crash last year,” he said, adding, “Ethereum has hit around $ 2,000 in support and has recovered quite strongly so far this week: The rating seems to be a key factor in the behavior of many participants. “

Meanwhile, Naeem Aslam, chief market analyst at Ava Trade, said that “Bitcoin bulls have been watching the four hour timeframe very closely and are hoping Bitcoin price will stay above the 50-day SMA (simple moving average). “

“Unfortunately, there isn’t much evidence of strength there either. If bitcoin price doesn’t win its war on the 50-day SMA and doesn’t stay above the 50-day SMA, we will likely see more weakness.”

Observe: What are the Risks of Investing in Cryptocurrency?

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