After a day of significant price changes, cryptocurrencies are expected to gain some ground on Wednesday.
Today, all major cryptocurrencies are trading in the green, indicating that investor sentiment is rising despite the significant volatility.
After dipping on Tuesday evening, Bitcoin, the world’s most popular cryptocurrency, has recovered. At 9:25 a.m., it was trading nearly 3% higher than it had been 24 hours before.
However, due to China’s crackdown and Elon Musk’s previous tweets, Bitcoin’s value continues to fluctuate dramatically.
Due to excessive volatility, the popular currency is battling to regain $40,000 in value.
The price of bitcoin fell on Tuesday after initially increasing in the morning, as China’s northern region of Inner Mongolia intensified its anti-crypto mining campaign.
Just days after Beijing promised to tighten down on Bitcoin mining and trade, it published draft laws to put an end to the practice.
It should be highlighted that the Chinese crackdown on Bitcoin is the primary cause of the current crypto market’s widespread weakness.
While crypto exchanges were prohibited in China in 2017, estimates claim that the country now controls up to 70% of the worldwide coin supply.
The crackdown, on the other hand, affects everything.
Despite the Chinese crackdown, Bitcoin and other popular cryptocurrencies have remained relatively stable, due largely to endorsement from high-profile supporters such as Tesla CEO Elon Musk, who has now changed his view on cryptocurrencies.
Ethereum (Ether) appears to be recovering faster than Bitcoin, which is trying to reach $40,000.
The second-most popular cryptocurrency has gained over 8% and is rapidly approaching $3,000, while it is still far from the all-time high it set earlier this month.
On Wednesday, all other major cryptocurrencies such as Ripple, Cardano, Stellar, Chainlink, and Litecoin surged.
At time of publishing this article, the value of these cryptos are as follows:
| Cryptocurrency | Price (US Dollar) |
| Bitcoin | $40,234.69 |
| Ethereum | $2,840.70 |
| Dogecoin | $0.3562 |
| Chainlink | $31.65 |
| XRP | $1.04 |
| Cardano | $1.76 |
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