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Bitcoins have the best day since July because of the price rebound

Despite today's rebound, bitcoin prices have dropped by around 70% this year.

Despite today's rebound, bitcoin prices have dropped by around 70% this year.

Bitcoin prices rebounded today at over 6%, rising above $ 4,000 and heading for the biggest daily jump since July, after selling off after recent heavy sales. In a large collapse of cryptocurrencies in the last two weeks, bitcoins, the largest cryptocurrency in the world, have lost more than 70% of their value this year. Bitcoin prices have touched nearly $ 20,000 in December last year. Traditional investors remained outside the bitcoin, with concerns over poor regulatory oversight and an undeveloped market infrastructure exacerbated by frequent price fluctuations. Analysts said the US Securities and Exchange Commission was partly responsible for the recent sales, with the delay in approving the new bitcoin tools, as well as for its investigation into initial coin offerings and crypto trades. .

The SEC has ordered civil sanctions against Airfox and Paragon Coin that have sold digital tokens considered as securities in the initial offerings of coins. These companies have agreed to return funds to damaged investors, register tokens as securities, report periodically to the Commission and pay penalties.

Bloomberg had previously reported that the US Department of Justice had initiated an investigation into the crypto-currency Tether on the possible manipulation of bitcoin prices at the end of last year.

Supporters of cryptocurrency claim that bitcoin is still young and that price volatility can be expected. Many predict that virtual currencies operating outside the traditional banking system will outweigh any short-term price decline.

Ten years ago, Satoshi Nakamoto, the unidentified founder of bitcoin, published a white paper that specified the need for an online currency that could be used for payments without the involvement of a third party, such as a bank.

The cryptocurrencies are here to stay despite a prolonged collapse this year, and they will gain more acceptance after the recent entry of more institutional investors into space, said Mohamed El-Erian, Allianz's chief economic advisor.

At a CoinDesk conference titled "Consent: Investing in New York", El-Erian said that the participation of institutional investors in various encryption projects, even if retail investors avoided the fall in prices, was a positive sign .

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