After dropping to almost $7000 on different cryptocurrency exchanges around the world earlier on Sunday, Bitcoin’s price has suddenly spiked by about 9 percent overnight, which could see the coin climb back to $9000 and above.
Over the weekend, it fell to a 5-week low of $7,335 following reports that Twitter will follow Google and Facebook’s lead in banning crypto-related ads.
However, the slump was short-lived as it regained poise and is expected to hit the $9000 mark in a few hours.
Prices are still off by 10 percent in the last seven days, according to CoinDesk.
The cryptocurrency hit a low of $7,335.57 earlier on Sunday, before recovering to above $8,000, according to CoinDesk. It was trading near $8,435 earlier on Monday.
The Sudden Slump
Traders were not sure of the reasons behind the latest comeback, but blamed the looming crypto ads ban on Twitter for the slump witnessed during the weekend. Twitter is reportedly to follow on Google and Facebook’s cue in banning ads on Initial Coin Offerings, token sales and other crypto-related products and services. Sky News reports that the latest Twitter policy could be effected in the next two weeks.
Both Google and Facebook succumbed to pressure from different government authorities and banned all ads related to cryptocurrencies for what the two tech giants said was to prevent misleading and deceptive promotional practices.
Facebook was previous, but now Twitter is also rumored, much of crypto demand is retail, so this may negatively impact demand
-Said Joe DiPasquale, CEO of BitBull Capital in an interview with CNBC. DiPasquale also blamed regulatory concerns after the SEC announced the widening of its scrutiny of crypto exchanges two weeks ago.
G20 Summit Resolution
Analysts have attributed the recent unexpected rise in Bitcoin’s value to the results of 2018 G20 Buenos Aires summit, at which the Financial Stability Board (FSB), the global financial watchdog for the 20 main economies in the world, announced that the current regulations on cryptocurrencies will remain unchanged – and no additional restrictions shall be issued.
The FSB’s chair and Bank of England Governor Mark Carney said in a letter to the press,
The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system,
Prior to the meeting, various crypto traders had anticipated that the FSB would come up with tough measures against the cryptocurrency trade, leading to price falls in major cryptos.
Meanwhile, it is highly unlikely that the G20 summit resolution was the main factor behind the recent Bitcoin price surge. CCN insists that the cryptocurrency market is recovering from the January correction after speculators behind short-term profits left the market.
Is Bitcoin back on track to recover to its heights of last year? Share your thoughts with us in the comments section.