© Reuters. FILE PHOTO: Representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20, 2021. REUTERS/Dado Ruvic/Illustration

NEW YORK (Reuters) – climbed back above $40,000 on Wednesday for the first time this week, before edging off its highs, as recent volatility in the cryptocurrency market showed few signs of dampening down.

Bitcoin jumped as much as 6.5% to $40,904, before easing back to around $38,797 at 11:45 a.m. Eastern time. Smaller coins, which tend to rise and fall with the largest cryptocurrency, also gained, with ether climbing more than 7.5% to above $2,915 earlier in the day.

Still, bitcoin is down 30% this month, and has lost over 37% from its record high of almost $65,000 hit in April. It has gained over 40% this year, however.

“Cryptocurrency market volatility is not going away anytime soon,” said Edward Moya, senior market analyst at OANDA. “Right now the aftermath of the crypto plunge is having everyone dig a little deeper to try to find out, are the ESG and regulatory concerns going to pose a major risk in the short term?”

Bitcoin's most recent slump has come amid concerns over the environmental impact of bitcoin production, an energy-intensive process known as mining, and as China has cracked down on the emerging sector.

Bitcoin touched a low of $30,066 last week, its weakest since January, in highly volatile trading.

BlackRock (NYSE:) Chief Executive Larry Fink said on Wednesday the world's largest asset manager is studying cryptocurrencies like bitcoin to determine whether the asset class could offer countercyclical benefits.

For now, it is too early to determine whether cryptocurrencies are “just a speculative trading tool” Fink said at the company's annual meeting.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

×