Bitcoin found its way back to $50,000 in value weeks after China’s regulatory clampdown on all forms of cryptocurrencies triggered negative sentiment in the crypto community.
Last week investors lost $21.35 billion following sell-off by investors frightened by China’s decision to outlaw all types of crypto and declare any digital virtual exchange illegal.
The Asian country announced its position on September 24, and in response, the value of digital assets including Bitcoin declined to $40,906 per coin.
However, one week later, Bitcoin rebounded with its value increasing by 23.1 percent within the period to sell for $50,362.98 – the highest in 24 hours – at the crypto market on Tuesday afternoon.
The most popular cryptocurrency was up by 5.44 percent in the last 24 hours and is currently sold at $50,018.78, according to the reference site, Coindesk.
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Bitcoin’s market capitalisation is $942.09 billion against the $804.35 billion posted after the September 25 move Chinese government to prosecute any individual trading cryptocurrency in its territory.
This means Bitcoin investors have regained the amount they lost to China in late September, gaining $137.74 billion in just one week.
According to a report, Bitcoin was up 5.23% at $43,716.97 as of 22:08 GMT on Thursday, adding $2,174.07 to its previous close.
The world’s biggest and best-known cryptocurrency has gained 57.6% from the year’s low of $27,734 on Jan. 4.
Ether , the coin linked to the ethereum blockchain network, rose 5.26% to $3,001.48, adding $150.08 to its previous close.
Bitcoin, the world’s largest cyrptocurrency in terms of market value, rose on Tuesday, passing the $50,000-mark for the first time in four weeks and adding to gains this monthon mounting institutional interest.
In early September, bitcoin fell below $50,000 during a broad selloff in shares of cryptocurrency and blockchain-related firms. It fell further in September, hitting a low of $40,596 on Sept. 21.
On Tuesday, bitcoin rose as high as $50,400 . It was last up 1.2% at $49,840.
Smaller coins, which tend to move in tandem with bitcoin, were also up. Ether rose 1.5% to $3,434 and XRP was up 2.2% at $1.0656.
Market participants cited buying from institutional services as investor demand for cryptocurrencies has risen.
On Tuesday, U.S. Bancorp (USB.N) announced that it launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and Cayman Islands.
On Monday, Bank of America Corp (BAC.N) published its first research coverage focused on cryptocurrencies and other digital assets as other mainstream financial institutions strengthen their involvement with the asset class.
“The banks are capitulating one by one,” said Martha Reyes, head of research at digital asset prime brokerage and exchange BEQUANT.
“For those of us working in the space, the fact that it’s too big to ignore is hardly news, and the regulators certainly aren’t ignoring it.”
Investment flows into the sector have been robust except for a few sluggish months in the summer.
Cryptocurrency investment products and funds recorded inflows for a seventh straight week, as institutional investors warmed to more supportive statements from regulators, data from digital asset manager CoinShares showed on Monday.
Specialist crypto tracker and research provider Coindesk released a review of the market showing a 25% gain for bitcoin and 32% gain for ether during the third quarter.
The report also cited the surge in non-fungible tokens (NFTs), which use blockchain to record the ownership of digital items such as images, videos, collectibles and even land in virtual worlds.
NFT sales surged to $10.7 billion in Q3.
