A bitcoin sign with a graph pictured in the background.
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Bitcoin and other cryptocurrencies recovered Wednesday after a brief sell-off, with the world’s biggest digital coin climbing back above $30,000.
The price of bitcoin traded as high as $32,765 Wednesday, according to Coin Metrics, and last traded at 31,641, about 6% up on the day. Smaller cryptocurrencies ether and XRP also rebounded about 6% each.
The crypto market saw significant selling on Tuesday, with bitcoin falling below the $30,000 mark for the first time since June 22.
The plunge came on the back of news that the New Jersey attorney general issued a cease-and-desist letter to crypto lending firm BlockFi, ordering it to stop offering interest-bearing accounts.
The reason for the move higher Wednesday wasn’t immediately clear. Cryptocurrencies often undergo severe price swings. Bitcoin, for example, rallied to an all-time high of almost $65,000 in April before halving in value in the months that followed.
The price of ether jumped about 1.5% in the afternoon after Tesla CEO Elon Musk disclosed he owns some of the cryptocurrency, as well as bitcoin and dogecoin, in the online event “The B Word.”
‘Dead cat bounce’
Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno, said Wednesday’s price move was likely a “dead cat bounce,” where an asset briefly recovers from a prolonged decline before continuing to slide.
Unless bitcoin can climb above $32,000-$33,000, Ayyar expects