Bitcoin price bounces up after sudden fall

Bitcoin price regained the $30,000 mark per coin after a day of sharp declines. But international experts believe that this currency will still fluctuate strongly in the near future.

Bitcoin price has bounced up after a day of non-brake plunge. According to CoinMarketCap data on May 13 (Vietnam time), the Bitcoin price increased sharply from a low level in the past 24 hours ($26,350/dong) to $30,600/dong.

As of 11:30 a.m., Bitcoin was trading around $30,500/dong, up nearly 10% from the previous 24 hours. Bitcoin's market capitalization is also close to the $600 billion threshold.

The sell-off of cryptocurrencies has decreased, the market has a bottom-fishing flow. Trading volume was about 10.5% lower than a day earlier.

The total capitalization of the entire crypto market increased 8.19% to $1.290 billion. Ether - the world's second largest cryptocurrency - also regained the $2,000 mark per coin, up 9.72% after one day.

Speaking to Zing, an international expert said that the Bitcoin price has recovered after the drop on May 12. However, the cryptocurrency market is still very vulnerable.

Recovery from a fall

On May 12, the Bitcoin price had a time of falling to $ 26,300 / dong, marking the lowest level since the end of 2020, which wiped out all gains in 2021.

“The crypto market has recovered from the turmoil associated with stablecoins, after Terra’s algorithmic stablecoin TerraUSD (UST) lost the $1 mark for a long time.” Mr. Edward Moya - senior market analyst at Americas OANDA (based in the US) - commented to Zing.

The UST coin is a stablecoin similar to Tether, pegged to the USD at a 1:1 exchange rate. However, the coin has been sold off sharply and is currently trading at $0.17.

And the LUNA coin - a token of the Terra project - has been blown away by nearly 100% of its value in just 24 hours. The coin is currently trading at 0.045 cents. On May 4, the price of LUNA hit a peak of 119.12 USD/dong.

“This caused market confidence to collapse. Bitcoin was already hit by a sell-off in risk assets, but it was the stablecoin crisis that pushed the price below $30,000 per coin on December 12. 5," he added.

According to Mr. Moya, so, Bitcoin has suffered 2 bad news at the same time. It is the fear that is pervading Wall Street, along with questions about the stability of stablecoins, that cast doubt on the entire crypto market.

The capital sell-off has been widespread in the crypto and equity markets after the US Bureau of Labor Statistics released new inflation figures for April. These numbers show the US Federal Reserve (Fed) ) will have to take stronger action to prevent prices from escalating.

In response to inflation, Fed officials raised interest rates twice this year and pledged to continue to lower prices. The US central bank's inflation target for this year is 2%.

Over the past two years, record low interest rates have helped lower the opportunity cost of risky assets like Bitcoin and industrial stocks, drawing investors' money into these assets.

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