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Crypto market struggling to gain lost ground after sell-off

written by Bella Palmer
bitcoin

Bitcoin was up 6.7% to trade at $39,070.55, inching towards $40,000 but not quite being able to get there

Bitcoin and other major cryptocurrencies continue to recover their losses but the market is struggling to recapture previous ground after heavy selling at the weekend.

Bitcoin was up 6.7% to trade at $39,070.55 (£27,506.45) on Tuesday morning, inching towards $40,000 but not quite being able to get there.

Ethereum was up nearly 20%, trading at $2,668.4797. Dogecoin added 14% to trade at $0.3648.

In the past 12 hours, Tesla CEO Elon Musk, a crypto advocate, has tweeted twice about dogecoin and once about bitcoin.

He asked Twitter users for ideas to develop dogecoin, and also tweeted: Someone suggested changing Dogecoin fees based on phases of the moon, which is pretty awesome.

With regards to bitcoin, he said he was in talks with North American Bitcoin miners about the crypto’s environmental impact.

One of the miners was London-based Argo Blockchain.

Its CEO Peter Wall said: Sustainability has always been at the heart of Argo's mining operations and the newly-formed Bitcoin Mining Council is the next logical step in fostering a sectoral shift towards renewable energy. I enjoyed speaking with Elon Musk about these issues this weekend.

The environmental impact of mining cryptocurrencies has often come under scrutiny, most recently when Musk said Tesla will no longer accept bitcoin due to environmental concerns.

Bitcoin prices are trying to stabilise today as Elon Musk seems to be favouring Bitcoin again, said Naeem Aslam, chief market analyst at Ava Trade.

His tweet about having conversation with North American Bitcoin miners is a clear evidence that the billionaire hasn’t abounded Bitcoin all together. Although, he has explicitly said that he likes Bitcoin, but his tone about Bitcoin seems to be positive, said Aslam.

One thing which is very important when it comes to crypto currencies is that Bitcoin is considered as the religion and with Bitcoin, the whole space could die, he added.

He also said US cryptos may have got a boost with Federal Reserve governor, Lael Brainard, promoting the idea of a digital currency backed by the Federal Reserve.

The crypto recovery comes after a deep sell-off over the weekend. By Sunday afternoon, the global crypto market had lost 9% over the last 24-hours, according to data provider CoinMarket.

The slump followed a volatile week, which included talk of a crackdown in China.

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