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Tuesday, July 16, 2024

A Bitcoin resurgence: Value exceeds $50,000 for the first time in 3 months

After China's new regulations, cryptocurrencies hit a major slump. However, it seems recovery has begun with Bitcoin leading the charge.

Cryptocurrency prices continued an ongoing recovery from a disorderly rout just three months ago. The market capitalization was increasing by 2.2 percent to $2.23 trillion.

The price of Bitcoin reached $50,251 after gaining 2.11 percent. With this price increase, the market capitalization of the BTC has reached $944 billion. Likewise, Ethereum (ETH) price gained 2.38 percent to reach $3,336. The market capitalization of ETH has reached $390.6 billion.

While Bitcoin has led the overall market’s recovery, smaller digital coins such as Solana, terra, avalanche, and fantom have also shot higher as they become more established and garner interest.

Read More: Pakistan to regulate cryptocurrency industry on FATF advice

Cardano’s Ada has surged in recent days to edge out Binance coin as the third biggest cryptocurrency by market cap. Ada has seen year-to-date returns of over 1,475 percent as its use cases grow for decentralized finance, non-fungible tokens, and gaming.

The rival to ether is getting a boost from hopes for its upcoming Alonzo upgrade, which promises to add smart-contract capabilities to its blockchain when it arrives in October.

The drop in the first two months of summer was mainly triggered by renewed regulatory steps taken by China, which shut down mining operations in the country.

More pressure followed after the US Senate passed an infrastructure bill that included a crypto tax to cover some of the expenditures under the program.

Read More: Legality of Cryptocurrency: Legal & Islamic Perspective

The cryptocurrency market continued to rebound after US-based crypto exchange Coinbase announced plans to purchase $500 million in digital currencies on its balance sheet and allocate 10 percent of profits into a crypto assets portfolio.

Last week, PayPal said it had let its British customers buy, hold and sell digital currencies, marking the first international expansion of the service outside the US, where it was launched last October.

The revival in digital currencies has excited animal spirits again among the cryptocurrency faithful, putting longer-term predictions of $100,000 or more for Bitcoin back in vogue. Others see the speculative, volatile asset carving out a broader trading range for now.