Bitcoin (BTC) sees slight rebound, still trading at late 2020 levels

Bitcoin Investors are still upset by the dramatic plunge over the past few days, when the world’s largest cryptocurrency fell below nearly $ 20,000, although it rose following a similar surge in US stocks on Thursday.

At 3:40 EST, Bitcoin was trading at around $ 21,667.90, up about 3% over the past day, according to CoinDesk data.

However, Bitcoin has remained at a level not seen since December 2020. Digital currencies fell about 27% last week, down about 70% from their all-time highs in November.

Other cryptocurrencies including etherIt was high even in the last 24 hours.

Bitcoin is a stock index, especially Nasdaq rose on Wednesday later Federal Reserve raises interest rates by 0.75 percentage points.. That’s one of the reasons Bitcoin rose slightly on Thursday.

However, there are still many problems with the crypto market.

Emotions are still shaking The collapse of the so-called algorithm stablecoin TerraUSD together Its sister token Luna..

Stablecoin is a type of cryptocurrency that is supposed to be fixed to real-world assets. Many seem to be one-on-one fixed to the US dollar.Some like Tether When USD coin, Supported by real assets such as fiat currencies and government bonds. However, many algorithm stablecoins such as TerraUSD do not have spare assets. Instead, the $ 1 peg is managed by an algorithm.

The current bear market, often referred to as the new “crypto winter,” is also testing the strength of other projects.

Another algorithm, Stablecoin USDD, also lost the dollar peg earlier this week. Responsible for maintaining USDD’s $ 1 peg, TronDAO Reserve holds other cryptocurrencies such as Stablecoin Tether and USDC in its reserve.

Meanwhile, all eyes Celsius, a cryptocurrency lending platform that may be facing bankruptcy, raises fears of spillover to a wider market.. Earlier this week Celsius has suspended customer withdrawals..