Cryptocurrencies reclaimed some of their losses after weekend sell-offs triggered by China’s crackdown on crypto mining and Tesla chief executive Elon Musk tempering his support, Reuters reported Tuesday.
Bitcoin has retreated to nearly half its value from last month’s high. It was last trading at $38,506.43 on Coingecko Tuesday, down almost 12% in the last seven days.
Ethereum, the second-biggest cryptocurrency, climbed more than 17% to as high as $2,459 Tuesday, after slumping more than 8% on Monday to near a two-month low.
Elsewhere, dogecoin also showed indications of recovery, soaring from 24 cents on Sunday to 36 cents on Monday. The cryptocurrency settled at $0.357447 on Coingecko, Tuesday, up 14% in the last 24 hours.
Other major coins, including binance coin and cardano are up by 44% and 23%, respectively. Broadly speaking, the cryptocurrency market was mostly in the green Tuesday, with just a few lesser-known coins down in the previous 24 hours.
“The drubbing that cryptocurrencies have received over the past two weeks is just a taste of things to come,” CNBC quoted Peter Berezin, chief global strategist at BCA Research, as saying in a note.
According to Berezin, the cryptocurrency markets will continue to face tighter regulation. “In the near term, the pain in cryptocurrency markets could drag down other speculative assets like tech stocks,” he said.
U.S. regulators hinted at restrictions, with the Treasury Department announcing any transfer of cryptocurrency worth$10,000 or more must be disclosed to the Internal Revenue Service.
The renewed clampdown on cryptocurrencies by Chinese regulators also sent shockwaves across the markets, resulting in massive liquidations, Forbes reported.
Meanwhile, HSBC said it has no plans to launch a cryptocurrency trading desk or offer the virtual tokens as an investment to its clients, because they lack transparency and are too volatile, its chief executive officer Noel Quinn told Reuters.