- Markets Insider
- Cryptocurrency were down as much as 18% in early trade in London – but are rising on Tuesday afternoon
- Bitcoin fell below $6,000 but is now back above $7,000.
LONDON – Bitcoin is back above $7,000 on Tuesday afternoon, after wild price swings saw it briefly drop below $6,000 earlier in the session.
Bitcoin briefly fell below $6,000 at around 8.00 a.m. GMT (3.00 a.m. ET) for the first time since mid-November.
Hussein Sayed, chief market strategist at FXTM, said on Tuesday morning: “The most famous digital currency has fallen 69% from December’s record high, and almost 56% from the start of the year.”
- Markets Insider
Ethereum, litecoin, bitcoin cash, and ripple also posted double-digit percentage losses early on Tuesday morning. Ethereum was down 18% at one stage.
But cryptos made up ground lunchtime in Europe and now, with the US awake, major cryptocurrencies are now positive.
Here’s the scoreboard at 1.55 p.m. GMT (8.55 a.m. ET):
- Bitcoin is up 3% to $7,140.74.
- Ethereum is up 3.9% to $717.91.
- Litecoin is down 3.3% to $128.66 .
- Bitcoin Cash is up 0.8% to $889.09 .
- Ripple is up 3.3% to $0.69.
Despite making up ground, bitcoin is still down around 35% over the last 7 days. From a peak of $830 billion at the start of January, the global cryptocurrency market has now shrunk to $330 billion, according to data provider CoinMarketCap.com.
The latest dive comes in tandem with a global stock market rout but that appears to be uncorrelated with the crypto crash.
Commentators have been blaming fears of regulation, cooling interest from Asia, and fears over the role cryptocurrency Tether plays in the bitcoin market. Banks are also clamping down on customers buying cryptocurrencies on their credit cards.
Miles Eakers, chief market analyst at foreign exchange business Centtrip, said in an email on Monday night: “Governments across the globe continue to clamp down on retail investors speculating on cryptocurrencies, with the People’s Bank of China stating it would step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs, ‘to prevent financial risks’.”