After the recent negative developments in the cryptocurrency market sparked by more regulatory efforts by China over the weekend
Cryptocurrencies continue to decline due to regulatory processes in China
After the recent negative developments in the cryptocurrency market sparked by more regulatory efforts by China over the weekend, Bitcoin started a gradual recovery starting on Monday (May 24) after falling back on Sunday evening (May 23) to $31,000, To get back more than $5000 coin in hours.
The leading cryptocurrency continued to climb and jumped to $40,000 during trading on Wednesday to hit a daily high of $41,000, however, it failed to maintain the bullish momentum and started correcting soon after.
It first fell below $40,000 amid recent reports that Iran banned bitcoin mining until September 22, ahead of its energy season, and the coin continued to slide today, reaching $37,400, and despite having recovered $1,000 since then, it is still low. Today it is down by approximately 4% compared to yesterday's levels.
Decline in the total market value For all digital currencies By $100 billion since yesterday to $1.7 trillion, after Bitcoin fell below $40,000 and other altcoins failed to increase any further.
Bitcoin could reach $100,000 this year
Bitcoin is currently experiencing a high level of volatility following Tesla's fossil fuel concerns, and despite the currency's significant correction, some market analysts believe that the leading currency will continue to climb to $100,000 before the end of the year, citing the nature of the cryptocurrency that It has always been very volatile, so it's no surprise that it has fallen so hard.
The leading cryptocurrency dropped to $30,000 on May 19, recording a drop of more than 50 % during the month, and despite a slight correction, the cryptocurrency is still on the downside.
Bitcoin's previous bullish cycle didn't see a correction as high as 50%, this makes it a bit hard to believe that the cryptocurrency will bounce back to a new all-time high soon.
Cryptocurrencies are facing huge fluctuations lately
Although Bitcoin is still far from achieving the $100,000 target, it did exceptionally well when it was trading at $65,000 at one time in the market.
But the cryptocurrency has failed to cross that mark and is currently struggling to climb $40,000. Bitcoin has been very volatile for the past two weeks, struggling against many market forces and has also faced a lot of challenges lately. It started with Tesla's recent concern about the increased use of fossil fuels for mining. Soon after, China intensified regulatory efforts on cryptocurrencies, and this contributed to the volatility of the world's most valuable digital currency.
Bitcoin mining has received a backlash recently as it has been pointed out how dangerous it is to the environment, with Elon Musk and Michael Saylor saying they have engaged northern miners to discuss further action, and miners forming a council to promote energy transparency around the world. .
Earlier this month, Tesla announced its decision to suspend payments in bitcoin for its products, as the electric car maker cited environmental concerns because the mining process uses a lot of fossil fuels.
However, CEO Elon Musk recently said that he has discussed with CEOs of North American Bitcoin mining companies in order to move forward with the deployment of the current and planned renewable usage.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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