Bitcoin regains lost ground on reports of JPMorgan fund 

Summary

  • The value of Bitcoin surged 2.7% to US$55,275 over the last 24 hours amid renewed buying by investors.
  • Other major cryptocurrencies were also in the green, with Ethereum hitting an all-time high of US$2,698.
  • Bitcoin price plunged to record low of US$49,079.77 last week on concerns about capital gains tax on cryptocurrencies in the US.

Bitcoin (BTC), the most popular cryptocurrency, extended gain on Tuesday as investors took opportunity of the last week’s dip in prices to pile up their digital currency assets.

The price of bitcoin climbed as high as US$55,514 in the past 24 hours. At the time of reporting, BTC was trading at around US$55,275, up 2.71% over the previous 24 hours. The market capitalisation of the world’s largest cryptocurrency surged to reclaim the US$1 trillion-mark after almost a week – and stood at US$1.03 trillion.

The rise in the crypto price was also fueled by news that JP Morgan Chase is planning to introduce an actively managed Bitcoin fund for some of its customers by this summer, according to Coindesk.

Meanwhile, other major cryptocurrencies were also in the green with Ethereum hitting record high. Ethereum, the world's second largest cryptocurrency in terms of market capitalisation, hit an all-time high of US$2,698.24 and was last up 7% at $2,690 back of reports indicating that European Investment Bank is mooting to introduce a "digital bond" sale on the ethereum blockchain network.

Among others, Uniswap’s (UNI) price was up 8.56% to trade at US$41.38, while Dogecoin, a meme-based cryptocurrency, was quoting at US$0.272, up 1.67%.

Last week, Bitcoin price had plummeted to 48-day low of US$49,079.77 as investors sentiment were spooked by the report that US President Joe Biden administration was mulling to raise capital gains tax on wealthy Americans.  The tax scare did not turn wealthy bitcoin investors jittery, but also other major digital currencies – Ether (ETH), Dogecoin (DOGE), Ethereum (ETC) - among others. The collapse of two crypto exchanges in Turkey during the week also dampened sentiments.

The fall in the Bitcoin, however, was much smaller as compared to return offered by the digital currency in the near term. The crypto coin has delivered a healthy return of 600% over one-year period on the back of strong buying by larger investors, such as companies and businesses.

Currently, the digital currency was trading 17% lower than its all-time high of US$64,870. The Bitcoin price had hit record high on 14 April 2021, on the day of Coinbase Global Inc. share listing on the US Stock Exchange.

Last month, Bitcoin price had crosses $60,000 after Elon Musk’s Tesla announced to buy $1.5 billion of the digital currency for its balance sheet. Given the growing popularity of Bitcoin among large investors and companies, the digital currency is expected to become a mainstream payment method. Recently, PayPal allowed its US consumers to use their cryptocurrency holdings to pay at its online merchants globally, a move which is likely to be followed by several other companies.

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