The price of bitcoin surged over $4,000 overnight to make up for the losses incurred last week.
The cryptocurrency climbed above $58,000 and closed earlier this month within the highs of $10,000.
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The 7 percent price increase was mirrored by several other major cryptocurrencies, including Ethereum (Ether) and Solana (SOL).
The total crypto market grew by more than 5 percent to over $2.5 trillion.
The rally back could signal the end of the price correction that BTC suffered after its all-time high, which blockchain data suggests is partly due to long-term investors slashing profits from their holdings.
Concerns about potential new cryptocurrency regulations introduced with the US infrastructure bill also contributed to the slowdown, as well as fears that creditors of collapsed crypto exchange Mount Gox could eventually liquidate their payments.
The reason for the recovery is not immediately clear, but it is likely to be likewise multidimensional.
One of the simplest explanations is that more bullish investors took the opportunity to “buy the decline” in hopes of returning the price to previous levels.
Among them was the President of El Salvador, Nayib Bukele, who said on friday That the Central American country had received “100 additional coins with a discount”.
El Salvador’s treasury now holds over 1,200 BTC and plans to use the profits to build schools and animal hospitals. President Bukele recently announced a $1 billion bitcoin bond to help support the development of “Bitcoin City”.
Private investors also revealed that they had acquired more cryptocurrencies during the recent fall.
“I bought about $10 million worth of BTC and ETH at current levels to add to my position,” Alex Mashinsky, CEO of crypto rewards firm Celsius Network, tweeted shortly before the market boom.
“We could see a retest of $53k for BTC and $4k for ETH, but this should be a short-term bottom, and we can go back to $70k from here.”
Credit: www.independent.co.uk /