Cryptocurrencies regained lost ground at the weekend, after China decided to restrict operations in the emerging currency market.
Bitcoin jumped 9.59% to $ 38,042.02, erasing Sunday’s losses, although it is still 40% below the all-time high it reached last month.
The second most important cryptocurrency, ether, was climbing more than 17% to a ceiling of $ 2,464, after plunging more than 8% on Sunday to lows near two months. Still, it has lost nearly half its value since its record last month.
The catalyst on Sunday was the “cryptocurrency miners” – who create digital currencies using powerful computers that solve complex mathematical problems – who decided to stop operations in China in view of strict regulation by the authorities.
The attention to crypto miners in China – who account for around 70% of the world’s supply – is the latest episode in a series of actions that Beijing is taking against the digital currency sector.
Digital currency platform Huobi said on Sunday that it has suspended some intermediary and food operations for new clients in mainland China, adding that it would instead focus on its overseas business. Other platforms have also closed their transactions in the Asian giant.
Bans in China were the main factor that put bitcoin on a roller coaster ride last week: It fell 11% on Wednesday, fell 12% on Friday, rose 8% on Saturday, and then fell 7.5% on Sunday.
The reasons for this decline, which worsened on Friday, were the critical statements of Tesla founder Elon Musk and the reluctance about cryptocurrencies shown by the People’s Bank of China (the Chinese central bank) and the European Central Bank (ECB). ).
With information from EFE and Reuters.
