The global flagship cryptocurrency has started a gradual recovery after nosediving below $40,000 earlier today.
Bitcoin goes under $40,000 first time since August
After the leading crypto declined lower than $40,000 for the first time since August and got more criticism from financial regulatory agencies, Bitcoin has managed to reverse and reach the $42,000 level.
Earlier today, the largest crypto grew back to the $42,132 level (surging 2.9%) after going down to $39,625 briefly and losing 3.2% on that drop. The top cryptos that follow Bitcoin on the top 10 list—Ethereum, Litecoin and Solana—lost more value in the past 24 hours, however.
Bitcoin Chinese issue relieved
As reported by the media earlier this week, the Bitcoin correction was mainly caused by low sentiment after issues in China. The second-largest housing builder in China, Evergrande Group, was unable to pay out $2 trillion yuan worth of its debts to shareholders.
However, according to CNBC, the company has negotiated a deal for paying interest payments on its domestic bonds on time. Besides, as the CNBC reporter in China said, the local Central Bank (PBOC) has issued a $14 billion stimulus to support the local banking system.
These measures have somewhat calmed down investors' worries for now.
SEC urges Congress to help with crypto regulation
According to Bloomberg, SEC chair Gary Gensler believes that there are certain gaps related to digital currencies that the U.S. Congress could help them solve. In particular, Gensler mentioned the regulation of crypto exchanges.
The SEC agency has recently attempted to regulate Coinbase by threatening to sue them unless the company backs out of its crypto lending project. Finally, CEO Brian Armstrong yielded to that and shelved the product that was preparing for launch.