WEB DESK: After facing a sharp decline of over $1,800 in early trade, Bitcoin is making a strong recovery. The world’s largest cryptocurrency was recorded at $80,503.11 at approximately 6:13 UTC, reflecting a rebound of more than $4,000 from its earlier low of $76,867.67, reached at 00:51 UTC.
This dip marked a significant loss from its previous level of $78,751.47, but Bitcoin is now on a recovery path.
Other major cryptocurrencies have also turned positive, with Ether (ETH) climbing by 1.60 per cent, or $29.88, to $1,898.28. Dogecoin (DOGE) gained 3.21 per cent, or $0.0049, bringing its value to $0.1588. Binance Coin (BNB) rose by 1.77 per cent, adding $9.44 to reach $541.85.
Bitcoin’s earlier drop below $82,000 on Monday followed disappointment from a recent White House cryptocurrency summit. The price fell further to $81,513, marking a decline of over 5 per cent in the past 24 hours, after trading above $90,000 prior to the summit.
The disappointment stems from an executive order signed by former President Donald Trump to establish a Bitcoin strategic reserve. While this should have been seen as a positive move for the cryptocurrency market, the reserve will be filled using Bitcoin acquired through criminal and civil forfeiture, rather than direct government purchases.
“The market reaction is driven by the absence of a clear plan for the government to actively buy Bitcoin,” explained Linh Tran, an analyst at XS.com. “Moreover, escalating trade tensions between major economies are adding further pressure to Bitcoin,” Tran added.
Bitcoin’s price had surged to an all-time high of over $109,000 on Inauguration Day, fuelled by optimism over the new administration’s potential support for digital assets. However, that enthusiasm has not yet materialised into tangible benefits for the crypto market.
As Bitcoin continues to recover, it remains to be seen how the broader market will react to ongoing global developments and regulatory decisions impacting the cryptocurrency space.
Read next: PSX in red at market open, KSE-100 sinks over 700 points