Prices for cryptocurrencies have begun to recover slightly from the steep selloff earlier this week, with Bitcoin climbing back above $30,000.
The price of Bitcoin, the world’s biggest cryptocurrency, rose nearly 4% in the last 24 hours to $30,798. Smaller cryptocurrencies such as Ether and XRP also rebounded, up around 7% and 3% respectively.
The rebound comes after cryptocurrency prices plunged sharply on news that the New Jersey attorney general issued a cease-and-desist letter to cryptocurrency lending firm BlockFi, ordering it to stop offering interest-bearing accounts.
Cryptocurrencies are subject to severe price swings. Bitcoin, for example, rallied to an all-time high of almost $65,000 in April before losing half its value in recent months.
More broadly, cryptocurrencies have been on a downward trajectory since the spring amid a growing crackdown on the industry from regulators around the world. Some analysts forecast that the price could drop below $25,000 in the short to medium term.
In China, authorities have sought to stamp out cryptocurrency mining, the process which validates transactions and produces new coins. Meanwhile, Binance, the world’s largest cryptocurrency exchange, is facing growing pressure from regulators in England, Italy and elsewhere.
