Bitcoin recovered slightly on Wednesday after dropping more than 6% in the previous 24 hours and falling below the psychological $50,000 barrier.
The world’s biggest and best-known cryptocurrency traded at $47,881.50 around 1.30pm Hong Kong time (0530 GMT), after closing on Tuesday at $47,606.92 on Tuesday, down $3,111.19.
Bitcoin is down 31% from the year’s high of $69,000 on November 10 and gave up all of the steady gains it had made this week.
Tuesday’s moves in cryptocurrencies were stark, reflecting low liquidity periods such as weekends and holidays.
“I can’t see any news behind the move, and I suspect year-end book squaring into thin market conditions exaggerated the range,” Jeffrey Halley, a strategist at Oanda, the New York foreign exchange brokerage, said.
The rise on Wednesday appeared to confirm analysts’ suspicions that the dip would be short-lived. “There is nothing to suggest that bitcoin’s recent $45,000 to $52,000 is under threat,” Halley added.
“Only a weekly close below $40,000.00 will have me concerned that another major downside correction is in play.”
Ether, the coin linked to the ethereum blockchain network, gained about 0.3% on Wednesday after falling 5.57 % to $3,812.6 on Tuesday, losing $224.80 from its previous close.
• George Russell
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