Bitcoin weakens: loses 10% on second day of losses, flirts with $ 30,000 again

The price of Bitcoin has fallen to its lowest level in more than a week as traders speculate on the prospects for changes in US monetary policy and the continued tightening of cryptocurrency regulations in China.

On Monday evening, the unit price of the most famous cryptocurrency hit a low of $ 33,480 before recovering within the next hour. On Tuesday, it exceeded this low again to reach $ 32,431 per unit. That’s a drop of more than 10% in the early hours of the day.

This is not a terrain that cryptocurrency investors are unfamiliar with. A few weeks ago on May 23 the price was trading lower than that. But with all the movement, it marked the biggest daily loss for believers in the crypto asset since May 28. And that casts doubt on the hopes of a rebound.

Some point to the continued pressure from mainland China on cryptocurrency trading and mining operations, following reports that the Weibo accounts of some of the top crypto influencers have been blocked on the eastern social network. .

Markets around the world have also operated on volatile ground, with investors considering the possibility that the US Federal Reserve could begin to withdraw from its lax monetary policy at the risk of spike in inflation.

Other notable cryptocurrencies were also trading in the red, with the top 10 by market cap falling between 7.3% and 12.9% in the previous 24 hours. Polkadot and XRP were the hardest hit, dropping 12.93% and 11.39% respectively.

As of last April, Bitcoin was able to reach its all-time high by touching USD 65,000 per unit for a few minutes. Since then, at this morning’s prices – unstable, of course – it has lost over 50% of that value.

Crypto investors who cultivate technical analysis – an investment method that analyzes stock market statistics to try and predict future movements – don’t like what they see. The near $ 30,000 per unit price that the price has approached several times is considered “support” or a level close to support which, if breached, would trigger an even larger decline, some of these claim. analyzes.

Security concerns

According to other interpretations, Bitcoin’s weakness could be linked to concerns about the security of the cryptocurrency after US authorities managed to recover most of the ransom paid to hackers who targeted Colonial Pipeline, a security company. management of a pipeline.

Court documents indicate that investigators were able to gain access to the password for one of the hackers’ Bitcoin wallets. The money was collected by a intervention force recently established in Washington as part of the government’s response to increasing cyber attacks.

On Monday, U.S. security forces said the equivalent of $ 2.3 million in bitcoin paid to DarkSide, the cybercriminal gang behind a cyberattack on Colonial Pipeline, had been seized.

According to a court document, the FBI was able to gain access to the “private key,” or password, of one of the hackers’ Bitcoin wallets. Bitcoin has often been the currency of choice for hackers demanding ransom payments to decrypt data locked by malware known as “ransomware”.

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