Bitcoin’s volatile streak persisted with a drop below the key $30,000 level, followed by a complete turnaround into positive territory. It briefly fell into negative territory for 2021 on Tuesday before recovering.
According to Coin Metrics, bitcoin fell more than 11 percent to around $28,911, well below the $29,026 level where it ended 2020. The cryptocurrency bounced back and was up 0.43 percent at $32,637.54 by 4:00 p.m. EST.
Bitcoin has been grappling to reclaim its previous quarter’s highs. It dropped precipitously in May as a result of Elon Musk’s market-moving tweets about bitcoin-related environmental concerns, and then even more precipitously in early June as a result of concerns about the cryptocurrency’s use in the Colonial Pipeline ransomware attack.
Since then, it’s been on a roller-coaster ride, battered by a barrage of headlines from China, where regulators have levied new restrictions on energy-intensive mining and instructed financial institutions such as Alipay to stop doing business with crypto firms. Last week, the price briefly reached $40,000 before dropping again on Monday.
Between mid-September and the peak in April, the price of bitcoin increased by nearly 500 percent. Despite the recent drop, the cryptocurrency has gained more than 200 percent in the last year.