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The crypto market edged up on Monday after a hellish week in which billions of dollars were wiped from the value of bitcoin and ether.
The price of Bitcoin rebounded above the $ 39,000 level on Monday after falling below $ 32,000 on Sunday.
Shares of the world’s largest cryptocurrency jumped more than 20% to $ 39,739.40 at 4:06 p.m. ET, according to Coin Metrics, after Tesla CEO Elon Musk and CEO of MicroStrategy, Michael Saylor, tweeted about meeting with North American bitcoin miners about “sustainability initiatives”.
Ether, the world’s second most popular cryptocurrency, rose from less than $ 1,800 on Sunday to over $ 2,600 on Monday. It was trading around $ 2,647.53 as of 4:07 pm ET, up 34.7%, according to Coin Metrics.
Elsewhere, dogecoin has also shown signs of a recovery, with its price dropping from 24 cents on Sunday to 36 cents on Monday.
Generally speaking, the crypto market was a sea of green on Monday, with only a few lesser-known coins falling in the past 24 hours.
Last week’s cryptocurrency sale came after Chinese and US authorities decided to tighten cryptocurrency regulation and tax compliance.
Chinese authorities on Friday called for tighter regulations on crypto mining and trading, and the U.S. Treasury on Thursday said it would require tighter crypto compliance with the IRS.
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Bitcoin plunged more than 30% at one point on Wednesday to nearly $ 30,000, its lowest price since late January, according to Coin Metrics. The cryptocurrency peaked in April at nearly $ 65,000.
The sale was a major reversal for the cryptocurrency, which appeared to be gaining traction among major Wall Street banks and publicly traded companies. This month, however, bitcoin has been hit by a series of negative headlines from major influencers and regulators.
Tesla CEO Elon Musk, who helped fuel bullish sentiment when his company announced in February that it had bought $ 1.5 billion worth of bitcoin, dealt a heavy blow earlier this month when he announced that the automaker has suspended purchases of vehicles using the cryptocurrency for environmental reasons.
Musk then sent mixed messages about his bitcoin stance, hinting in a tweet that Tesla may have sold his holdings, only to later clarify that he had not.
“The asset class continues to be very volatile, with the potential for large price movements resulting from a single tweet or public comment,” CIBC analyst Stephanie Price said in a note Thursday.
A report from JPMorgan showed that large institutional investors were moving away from bitcoin in favor of gold, raising questions about institutional support for cryptocurrency.
Additional reporting by CNBC’s Hannah Miao.
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