Bitcoin recovers after falling below $30,000 on Tuesday

Bitcoin that has been witnessing a slide for the past few days eventually dropped below $30,000 on Tuesday evening. The cryptocurrency had not fallen below $30,000 since January. However, all's not lost for investors as the cryptocurrency rebounded on Wednesday. According to CoinMarketCap index, Bitcoin recovered 3.44 per cent to $33,833.81 today morning.

Ethereum also recovered 1.77 per cent to $1,997.91 and Tether recovered 0.04 per cent.

Such fluctuation is in line with the crypto's trading history. It started trading around $29,000 in January after witnessing a four-fold increase since 2020. It hit its peak of $65,000 in April but has since lost more than 50 per cent.

Sean Rooney, head of research at crypto asset manager Valkyrie Investments told Bloomberg that such trading indicates that Bitcoin traders could find themselves in choppy waters for weeks to come.

The cryptocurrency had breached $30,000 during at least five separate instances this year before Tuesday but had recovered each time to trade above that level.

This dip can be credited to concerns about its energy use that was put on focus by Elon Musk. China's crackdown on Bitcoin mining has also pushed it low in recent weeks. The People's Bank of China summoned officials from its biggest banks as well as AliPay on Monday to reiterate its ban on cryptocurrency services.

Beijing is aiming to reach peak output of greenhouse gas by 2030 and achieve carbon neutrality by 2060. Due to concerns about its environmental impact, Bitcoin mining has come under the Chinese government's lens. Long hours of running computers to produce Bitcoin is detrimental to the environment, experts have pointed out.

Also read: Bitcoin continues to tumble, falls below $30,000

Also read: Bitcoin tumble continues; nears $30,000

Bitcoin recovers after falling below $30,000 on Tuesday