X

This is not a paywall.

Register for free to continue reading.

We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. It’s quick, easy and will cost you nothing.



Nearly there! Create a password to finish up registering with us:


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Bitcoin Bounces Back After Tumbling Below $30,000 Thres...

Business Maverick

Business Maverick

Bitcoin Bounces Back After Tumbling Below $30,000 Threshold

A bitcoin logo on the carpet of a bitcoin automated teller machine (ATM) kiosk in Barcelona, Spain, on Tuesday, Feb. 23, 2021. Bitcoin climbed, aided by supportive comments from Ark Investment Management’s Cathie Wood and news that Square Inc. boosted its stake in the cryptocurrency. Photographer: Angel Garcia/Bloomberg
By Bloomberg
23 Jun 2021 0

Bitcoin extended gains in Asia trading Wednesday, bouncing back after earlier whipsawing investors with a dip below the $30,000 level.

The largest cryptocurrency rose as much as 4.5% and was trading at $33,837 as of 9:38 a.m. in Hong Kong. The coin plunged 12% at one point during U.S. trading hours Tuesday to hit $28,824, which briefly took it into negative territory for the year. Prior to that, it hadn’t fallen below $30,000 since January.

Bitcoin has lost more than 50% from its mid-April high of almost $65,000. The coin started 2021 trading around $29,000 following a fourfold increase in 2020.

Such trading signals “that Bitcoin traders could find themselves in choppy waters for weeks to come,” said Sean Rooney, head of research at crypto asset manager Valkyrie Investments.

Bitcoin briefly fell below the key level Tuesday

Chart-watchers said Bitcoin, which failed to stay above $40,000 last week, could have a tough time finding support in the $20,000 range following its drop below $30,000. Still, Bitcoin had prior to Tuesday breached $30,000 during at least five separate instances this year but recuperated to trade above that level each time.

“Any meaningful break below $30,000 is going to make a lot of momentum players to throw in the towel,” said Matt Maley, chief market strategist for Miller Tabak + Co. “Therefore, even if Bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term.”

It’s a remarkable comedown for the digital asset which just weeks ago was trekking higher amid a warmer embrace from Wall Street as well as retail investors. But negative attention about its energy use, brought on largely by Tesla Inc.’s Elon Musk, as well as a clampdown from China have pushed it lower in recent weeks.

Read More: Crypto-Linked Stocks Sink as Bitcoin Plunges to Five-Month Low

China’s latest broadside came Monday, when the nation’s central bank said it had summoned officials from the biggest lenders as well as AliPay to reiterate a ban on cryptocurrency services. Chinese officials are already trying to root out crypto mining operations.

“Bitcoin’s continued sell-off has contributed to a negative outlook by traders driven by bearish news out of China,” said Nick Mancini, research analyst at crypto sentiment analytics provider Trade The Chain. “The mood among traders is now continuing to sour.”

Exuberant rallies and quick drawdowns are not uncommon for Bitcoin and other cryptocurrencies. Bitcoin underwent a renaissance in 2017, rising more than 1,000% that year, only to lose roughly 75% in the following year. And last year, it advanced 300%.

“The most speculative part of the market is cryptocurrency,” said Eric Diton, president and managing director of The Wealth Alliance. “At the end of the day, what determines the value of Bitcoin is acceptance and more demand and supply. When you have a country like China come out against Bitcoin, that really hurts it’s global acceptance and that’s why you’re seeing the value deteriorate as much as it has.”

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted