Bitcoin Turns Higher after Falling below $29,000

Bitcoin turned higher during trading on Friday, after falling below $29,000.

The cryptocurrency is heading to record weekly losses of more than 12%, to continue its decline after reaching a record high near $42,000 earlier this month.

On her part, the US Treasury Secretary candidate Janet Yellen warned that the government may need to reduce the use of virtual currencies to prevent illegal activity.

By the end of trading, bitcoin rose about 1.8% to $32,242 after falling to $28.953 earlier in the day, according to CoinMarketCap data.

Ethereum, the second-largest cryptocurrency by market value rose by 0.7% to reach the level of $1223.9.

During the same time, the market value of the total cryptocurrencies dropped to $923.8 billion, compared to the $945.7 billion a day earlier.

Despite the recent decline, bitcoin continues to gain 6% year-on-year, and over 35% from the $23,000 seen exactly a month ago. Analysts remain optimistic about the long-term outlook for cryptocurrencies, and the fact that it might hit $50,000.

"However, despite a bounce earlier on Friday, bitcoin may yet see further losses in the near term," Coin desk wrote, predicting a further decline to $26,000.