Bitcoin Makes A Quick Recovery From The $7,000 Level
In less than three hours, bitcoin prices made a recovery in Sunday’s trading, ending the tense weekend which saw prices sliding down from $8,000 heading towards the $7,000 level.
According to data from Coinbase, despite the recovery, prices are still down by 15 percent over the past 7 days.
Earlier on Sunday, bitcoin reached a low of $7,333.57 before bouncing back above the $8,000 level.
Investors are still in doubt as to what is behind the quick bounce back, however, fingers are being pointed at the possibility of another restriction on the cryptocurrency. Over the weekend, there were reports stating Twitter also has plans to ban bitcoin advertisements and other activities internationally. Based on the reports, this ban is expected to take effect in two weeks.
It is also possible that the stance of Twitter will be emulated by other tech leaders to ban cryptocurrency advertisements with the sole aim of controlling cryptocurrency criminal activities.
Last week, Google released more details regarding its financial services policy that will ban advertising for “cryptocurrency and related content” staring this June.
Earlier in January, the advertisement provider of Facebook noted all promotion advertisement for cryptocurrencies will be banned to stop the circulation of what is referred “financial products and services frequently associated with misleading or deceptive promotional practices.
Joe DiPasquale, CEO of BitBull Capital explained “Facebook was previous, but now Twitter is also rumored. Much of crypto demand is retail, so this may negatively impact demand.”
There has been no response from Twitter regarding this comment.
DiPasquale also brought to light the expensive price of mining is also influencing bitcoin. Bitcoin miners are rewarded in bitcoin for using software to solve math problems. This is an estimated $8,000 per bitcoin.
DiPasquale went on to add that “Now that it’s dropped below that, there’s less incentive for miners to continue to keep machines on unless they are in a lower-cost energy area or have a way of producing at less than cost.”
In the past weeks, bitcoin prices have also been affected by regulatory concerns.
Following the statement by the SEC that increased its inspection into cryptocurrency exchanges and transactions in addition to talks of compromised accounts on a major Hong Kong-based exchange Binance two weeks ago, bitcoin prices started to drop from $11,000.
