Business News: Bitcoin recovers $40,000 while cryptovolatility persists.
Bitcoin rose above $ 40,000 for the first time this week on Wednesday, while recent volatility in the cryptocurrency market showed little sign of abating.
Bitcoin jumped a whopping 6.5% to $ 40,904. Smaller coins, which tend to go up and down with the largest cryptocurrency, also gained, with the ether growing more than 7.5% to over $ 2,906. However, bitcoin fell 30% this month and lost over 37% from its record of nearly $ 65,000 reached in April. However, it has gained over 40% this year.
Drivers of the recent bitcoin crash include fears of a crackdown in China against the emerging sector, as well as concerns about the environmental impact of bitcoin production, an energy-intensive process known as mining. Bitcoin reached $ 30,066 last week, its lowest since January, in highly volatile trading.
On Tuesday, China’s northern Inner Mongolia region stepped up a campaign against cryptocurrency mining, publishing a draft rules to eradicate the activity, days after Beijing promised to crack down on bitcoin mining and trading.