Bitcoin prices rallied back by more than $700 in less than three hours during late Sunday trading, capping off a wild weekend that saw the digital currency plunge through $8,000 and even near the $7,000 level.
Prices are still off by 15 percent in the last 7 days, according to Coinbase.
The cryptocurrency hit a low of $7,335.57 earlier Sunday before recovering back above $8,000, according to CoinDesk.
Traders were unsure of what was behind the late comeback, but blamed another possible bitcoin advertising ban for the weakness over the weekend. Twitter is reportedly preparing to ban advertising for initial coin offerings, token sales, and cryptocurrency wallets globally, according to Sky News. The new policy could roll out in two weeks, the report said.
The move would echo other tech giants restrictions on advertising, and efforts to crack down on cryptocurrency frauds.
Facebook, the world’s second-largest online ad provider, said in January it would ban all ads that promote cryptocurrencies to prevent the spread of what it called “financial products and services frequently associated with misleading or deceptive promotional practices.”
“Facebook was previous, but now Twitter is also rumored,” said Joe DiPasquale, CEO of BitBull Capital. “Much of crypto demand is retail, so this may negatively impact demand.”
Twitter declined to comment.
DiPasquale also pointed to the high price of mining affecting bitcoin’s drop. Bitcoin miners use software to solve math problems and are given bitcoins in exchange. That now costs around $8,000 per bitcoin, he said…