The cryptocurrency market has been given a breather since Wednesday morning, as prices recovered from Tuesday's lows.
The cryptocurrency market has been given a breather since Wednesday morning, as the prices of the leading crypto-asset recovered from Tuesday's lows.
Bitcoin price surged to $34,000 on Thursday after diving to $29,000 on Tuesday, hitting its lowest level this year, and Ethereum also surpassed $2,000 after selling pressure pushed it to nearly $1,700 on Tuesday.
most followed Leading Cryptocurrency Others followed the pattern, posting double-digit gains from Tuesday afternoon lows.
This recovery comes after a week in which all digital assets recorded strong declines, following the decision of the Chinese authorities to intensify their crackdown on mining and cryptocurrency trading in the country.
Between June 15 and June 22, Bitcoin lost approximately 30%, as its price fell from the level of $41,000 to the level of $29,000. Binance (BNB) is approximately 40%.
Low liquidity in the cryptocurrency market
The recent development in the cryptocurrency market has also reduced activity on most blockchains, reflecting lower levels of trading.
Blockchain data reflects that on-chain activity across the board is notably low, particularly Bitcoin and Ethereum, with demand for the block space dropping to levels last seen in 2020.
Although lower transaction demand indicates a bearish potential overall for the crypto market, it also indicates weak selling at current price levels.
Active Bitcoin addresses are down 24 % from a peak of 1.16 million seen from March to early May, current activity is 884,000 addresses last seen at this time last year.
For Ethereum, the drop in active addresses was larger, or roughly 30 % from the short peak of around 676K addresses, the drop in trading values being partly due to lower prices but also due to lower trading volumes.
Lower prices due to strict regulation of mining in China
Bitcoin prices have been under constant pressure from the Chinese authorities to get rid of crypto-related activities, while the ongoing attack by miners and trade links is one of many attempts, but this current ban is feared because the proposed digital yuan is in advanced stages, the ban may be a strategic To prevent competition with the government-backed currency.
As China continues to enforce the ban, MicroStrategy CEO Michael Saylor continues to reaffirm his confidence in the potential of Bitcoin to crypto-industry players and institutional investors. The company's holdings of bitcoin to 105085 digital currencies.
Although the accumulation of MicroStrategy may not move the market, it can inspire other corporate buyers to bet heavily on the currency, a situation that may collectively affect the price of the asset.