Bitcoin rebounded 13% to a value of $ 38,000, while the world’s second largest cryptocurrency, Ethereum, rose more than 27%, worth just under $ 2,475.
Bitcoin’s value was halved just weeks after April’s all-time high of $ 64,895. Cryptocurrency markets operate 24/7, which means prices can change drastically at any time.
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“Many see bitcoin’s volatility as untenable,” RBC Capital Markets’ Amy Wu Silverman wrote in a research note released Saturday. “Indeed, Bitcoin is making severe and dizzying swings.”
Bitcoin’s latest drop came shortly after Tesla CEO Elon Musk announced that the company would no longer accept Bitcoin as payment for its vehicles, citing environmental concerns.
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“We are concerned about the increasing use of fossil fuels for Bitcoin mining and transactions, particularly coal, which has the worst emissions of all fuels,” he said in a statement posted on Twitter on May 12.
“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it can’t cost the environment dearly.
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On top of that, China said it will crack down on Bitcoin mining and trading on Friday, as part of its continued efforts to ward off financial risks.
China’s statement came days after three Chinese industry bodies tightened the ban on banks and payment companies providing crypto-related services.
“Recently, cryptocurrency prices have soared and fallen, and speculative cryptocurrency trading has rebounded, seriously undermining the security of people’s property and disrupting the normal economic and financial order.” they said in the statement.
– with files from Reuters