Bitcoin recovery stalls as value dips back below US$40,000
In early deals in London, the digital currency was trading at around US$39,923, off its lows during Wednesday’s selloff but still down over 12% for the week
The recovery of Bitcoin following Wednesday’s meltdown of the crypto markets appeared to have stalled on Friday morning.
In early deals in London, the digital currency was down 1.1% at US$39,923, giving it a market cap of US$747bn.
READ: Bitcoin price will hit US$500,000, says Ark Investment’s Cathie Wood
While Bitcoin is still trading solidly above the weekly low of around US$34,923 on Wednesday evening at the height of the selloff, the crypto’s value is still down around 12.5% since the start of the week and trading at its lowest levels since early February.
Other cryptos have been hit similarly hard by the market bloodbath this week, with Ethereum, the world’s second most-valuable crypto, down around 22% this week at US$2,729 with a market cap of US$316.5bn.
However, crypto investors and the wider market may have found relief in the fact that the crash has been something of a speed bump that has not seemingly triggered a broader decline in the markets, a fact that was bolstered overnight after the president of the St Louis Federal Reserve James Bullard said the central bank did not see the steep drop in crypto markets as a systemic concern.
Bitcoin specifically has also benefitted from continued backing from major investors in the crypto space including Ark Investment’s Cathie Wood and Tesla boss Elon Musk.
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