CRYPTOCURRENCIES have risen slightly over the past 24hours, proving the consistently volatile nature of coins like Bitcoin, Dogecoin and Ethereum.
The value of Bitcoin has recovered slightly, although it is still down 30.21% over the past seven days, and others such as Ethereum are down 38.15% over the last seven days.
The extreme volatility and accompanying sudden market falls are one of the reasons that investing in cryptocurrency is a very risky business.
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Which cryptocurrencies have risen in value?
The price of Bitcoin is up by 3.03% over the past 24 hours, according to Coinmarketcap.
It’s currently sitting at a value of $21,209, but still significantly below highs of $64,000 in April last year.
The second biggest cryptocurrency Ethereum has also risen in value in the last 24 hours and so have other popular coins like Dogecoin and XRP.
However, despite the uptick, all three are still at lower values than this time last week.
Ethereum is up by about 5.36%, trading at $1,120 at the time of writing, while Dogecoin is up 8.08% at $0.05644.
Dogecoin’s rival, Shiba Inu, is also up 4.39% at $0.000008159.
It comes after a series of hammer blows to a number digital currencies, which have never fully climbed back to the highs of April 2021.
Why are currencies up?
It’s not clear what has caused Bitcoin’s, and other coins’, small spike in value – but fluctuations are to be expected given the volatility of cryptomarkets.
The coins suffered throughout the second half of 2021 after they were hit by market forces and tougher regulation.
Most recently, stock markets dived as investors sold off a large number of assets in a short amount of time, which affected cryptocurrencies too.
In July last year, the Met Police also seized nearly £180million in the largest-ever cryptocurrency raid in the UK.
Meanwhile, the world’s biggest cryptocurrency exchange, Binance, was banned from operating in the UK by the financial watchdog in June.
While Brits can still buy and trade coins on the platform, it means Binance is no longer allowed to “undertake any regulated activity” in the UK.
China is also getting tough on cryptocurrency mining – the energy intensive method of creating new coins.
A number of authorities across the country have ordered crypto-mining projects to close – including the Sichuan province.
Iran has banned the mining of cryptocurrencies including Bitcoin for nearly four months because the country faces major blackouts and mining uses lots of power.
Meanwhile, poster adverts for cryptocurrency platform Luno have been banned for failing to mention the risk of Bitcoin investments.