Bitcoin Bounces Back to $40,000 Following Crash on Wednesday

Bitcoin climbed back to $40,000 on Thursday after falling below $34,000 the previous day
The drop was triggered after China issued new sanction on cryptocurrencies
Beijing banned banks from initiating transactions and providing crypto-related services

The price of Bitcoin reached a three month low on Wednesday as the cryptocurrency continued its crash.

The flagship coin dropped below $34,000, its lowest point since February 2021.

BTC’s last drop gained momentum after China introduced fresh sanctions on cryptocurrencies.

China’s capital, Beijing banned banks and financial institutions from initiating and processing crypto-related transactions.

The country also warned its citizens against speculative cryptocurrency trading to avoid loss of funds.

Other digital currencies like Etheruem and Dogecoin lost over 20% of their value as well.

Binance’s BNB was also one of the major losers on Wednesday, as the coin dropped over 30% in value.

Bitcoin

On Thursday morning, BTC recovered by over 5% to climb back to $40,000.

At the time of this report, the global market cap of cryptocurrencies is $1.77 Trillion.

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