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Bitcoin Recovers from Dramatic Fall Below $30,000

Bitcoin extended gains during today’s Asian trading session, rebounding from a fall below $30,000. The digital coin is trading at $34,154.70 at the time of writing. During Tuesday’s US trading session, Bitcoin fell 12% and was trading at $28,824 – a level below $30,000 the digital coin hadn’t fallen to since January.

Bitcoin increased by 400% in 2020, entered 2021 trading around $29,000, and is now trading more than 50% below its mid-April record high of almost $65,000.

The sharp plunge comes a few weeks after a recent rise due to signs of wider acceptance from Wall Street and investors. Negative publicity around Bitcoin’s high energy consumption brought to center stage by Tesla’s CEO Elon Musk and China’s renewed attempts at crypto crackdown has caused the digital asset to trade at much lower levels in recent weeks.

On Monday, China summoned its biggest banks and payment processors officials to a meeting intending to reinforce a current ban on cryptocurrency-related activities with more active measures.

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Most Asian stocks posted gains with U.S. equity futures after Federal Reserve officials’ comments on inflation and an unchanged monetary policy reassured traders and strengthened investor sentiment. Oil traded higher than $73 a barrel after the release of a report showing another decline in U.S. crude oil reserves.

Fed Chair Jerome Powell restated that inflation pressures will be transitory despite the recent rise in prices. He further commented that the Fed will not proceed with lifting borrowing costs without careful consideration. The statements caused the dollar to strengthen.

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