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Bitcoins struggles over tight regulations in China after new low

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Bitcoin recovered marginally on Thursday from the previous session’s brutal slide to four-month lows but was weighed down by concerns over tighter regulation in China and unease over massive leveraged positions in the cryptocurrency world.

Bitcoin, the biggest and most popular cryptocurrency, rose 8.75 percent to touch $40,000, albeit briefly, after plunging 14 percent on Wednesday to its lowest since late January.

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Smaller rival ether was up 3 percent at $2,517, but in extremely volatile trading after its 28 percent tumble on Wednesday.

Wednesday’s declines in both digital assets were their biggest daily percentage moves in more than a year as investors rushed to exit trades that until recently were heartily outperforming traditional markets such as stocks and bonds.

The latest catalyst was a statement by Chinese financial industry groups on Tuesday banning institutions from offering cryptocurrency registration, trading, clearing, and settlement.

But bitcoin had been under pressure for almost a week after a series of tweets from carmaker Tesla’s chief Elon Musk, a major cryptocurrency backer, chiefly his reversal on Tesla accepting bitcoin as payment.

While Beijing has taken steps before to block access domestically to cryptocurrency exchanges, its latest directive was broader.

It bans the use of cryptocurrencies in payment and settlement, and prohibits institutions from providing crypto-related products or exchange services between cryptocurrencies and the yuan or foreign currencies.

Read more:

Bitcoin slides below $40,000 after China’s fresh curbs on crypto transactions

Bitcoin still struggling after partial market recovery following Musk’s Tesla U-turn

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