Bitcoin price shot up to $50,000 on Sunday, the highest in more than three months and since its peak in April. Other cryptocurrencies also saw a rebound.
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Bitcoin Price On The Up
CoinDesk data showed that bitcoin jumped high at around 10:40 p.m. ET on Sunday, CNBC reports. “It was trading at around $50,095 at 2:45 a.m. ET on Monday.”
The increase is the highest since the $64,000 all-time peak in April, which was followed by a sharp drop in both June and July that saw the cryptocurrency below $30,000.
Experts agree that the reason for the dive was China’s crackdown on crypto mining that “forced bitcoin mining operations to shut down and move elsewhere.”
Back then, the bitcoin mining power of the Asian giant dropped 75.65% between September 2019 and April 2021, accounting for less than half of the global output.
The CEO of Hong Kong-based blockchain company Red Date Technology, Yifan He, even went on to say that the cryptocurrency industry in China “has officially disappeared” due to China’s aggressive policies.
However, bitcoin started to go up and regain ground as of mid-July.
Some positive news has made its way into bitcoin’s upward trend and that of other cryptos. CNBC reports that Coinbase “would buy $500 million in crypto on its balance sheet and allocate 10% of profits into a crypto assets portfolio.”
In the U.K., PayPal said it would allow people to trade digital currencies through a new service.
Bitcoin price is pulling other cryptocurrencies, as Ether traded higher by about 1.8% at $3,302.59 on Monday morning. “Ethereum, the blockchain network powered by ether, activated a key upgrade earlier this month which helped lift the price.”
According to Vijay Ayyar, head of business development at cryptocurrency exchange Luno, “there was a lot of buying around the $29,000 to $30,000 level when bitcoin was roughly at a 50% discount to April’s all-time high.”
“Lots of large players took advantage of those prices,” Ayyar said, adding that bitcoin price could move “to test all-time highs again.”
Coinmarketcap data showed that the value of the whole cryptocurrency market had hit more than $2.14 trillion on Sunday.