Cryptocurrencies dip as bounce momentum recedes

Cryptocurrencies dipped on Thursday as their bounce momentum decelerated. However, the digital coins did not touch recent lows as investors’ outlook toward the digital assets remained positive, and that they are still capable of bouncing back from the previous week’s decline.

Bitcoin lost 4% in Asia to about $37,600. Ether, the second-largest crypto, declined 7.5% at $2,676. Despite losses, the two largest crypto assets remain well above deep week-ago troughs, but they are also far from their record highs in April.

According to some analysts, the declines were relatively modest compared with recent volatility and pointed to a market finding a floor.

The decline in Bitcoin was attributed to China’s stance to crack down on mining and trading of cryptocurrencies, along with Tesla’s suspension of its stance to accept digital coins as payment due to environmental concerns about energy use.