Bitcoin reclaims $40,000 as crypto volatility lingers

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Representations of the virtual currency Bitcoin are on a motherboard in this illustration from May 20, 2021. REUTERS / Dado Ruvic / Illustration

Bitcoin surged back above $ 40,000 for the first time this week on Wednesday as recent volatility in the cryptocurrency market showed little sign of slowing.

Bitcoin even rose 6.5% to $ 40,904. Smaller coins, which tended to rise and fall with the largest cryptocurrency, also gained, with the ether rising over 7.5% to over $ 2,906.

Still, Bitcoin is down 30% this month and lost over 37% from its record high of nearly $ 65,000 in April. However, this year it has increased by over 40%.

Drivers of Bitcoin’s recent slump have included fears that the emerging sector in China will be crushed, as well as concerns about the environmental impact of Bitcoin production, an energy-intensive process known as mining.

Bitcoin lost $ 30,066 last week, its lowest level since January, in highly volatile trading.

China’s northern region of Inner Mongolia escalated a campaign against mining and trading of cryptocurrencies on Tuesday and released draft rules to root out the business days after Beijing promised to crack down on bitcoin mining and trading. Continue reading

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