Bitcoin rose above $30,000 on Thursday as cryptocurrencies sought direction but failed to recover from huge losses in the past two weeks.

Bitcoin, the world's largest cryptocurrency by market capitalization, exceeded $30,000 at 11.15 a.m. Bulgarian time, and at 16.00 p.m. Bulgarian time it traded around this level with a growth of 2.5% for the day.

The price of Ethereum, the world's largest altcoin, was $1,995 with a daily increase of 1%.

The crypto market has lost almost half of its value in the last six weeks. Most of the losses came in the last two weeks after the US Federal Reserve raised interest rates by 50 basis points on May 4 and signaled further increases in June and July.

In addition to tightening monetary policy on the part of the Fed, the crypto market is struggling with internal hurdles, especially with the sharp depreciation of the controversial stable UST coin since last week.

Originally intended to be pegged to the dollar, the price of the UST continued to fall and fell to 0.08795 dollars.

The Luna Foundation Guard, the organization behind UST, has sold bitcoins worth at least $2.1 billion in the past 10 days to support the price of UST, according to data released Monday.

Many crypto investors partly blame the organization for selling its Bitcoin reserves and causing it to fall in price to return UST to $1.

A positive development for cryptocurrencies came when Russian Industry and Trade Minister Denis Manturov said on Wednesday that his country would sooner or later legalize cryptocurrencies as a means of payment as Moscow struggles with Western sanctions on various sectors, especially banking, industry and energy.

Follow Novinite.com on Twitter and Facebook

Write to us at editors@novinite.com

Информирайте се на Български - Novinite.bg

/BGNES