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It was a challenging week for Bitcoin, with the price falling to just $47,159.49 on Sunday – its lowest level since 5 March. Market sentiment also fell to its lowest level for almost a year, hitting just 27 on the Fear and Greed index.
However, it seems any talk of a bear market may have been premature. Bitcoin came roaring back on Monday and is already trading at just below $55,000 again. The leading cryptocurrency’s market cap is now back above $1 trillion for the first time since last Thursday.
Bitcoin’s recovery received a boost from several pieces of good news. First, Tesla announced it has gained $100 million through its Bitcoin investment, which exceeded standard expenditure. The electric car giant’s CFO, Zachary Kirkhorn added that "there are lots of reasons to be optimistic" on the cryptocurrency.
Sources today also revealed that JP Morgan is preparing to offer their private clients an actively traded bitcoin fund. The move would represent a seismic shift in position for the US mega bank, whose CEO, Jamie Dimon, has previously been a vocal opponent of the cryptocurrency. How many worlds are there left for the cryptocurrency to conquer?
The positive price momentum is the order of the day, with the total crypto market cap also returning to over $2 trillion. Ethereum (ETH) is changing hands at over $2,600 again, boosted in particular by news that average fees have dropped over the past seven days. The drop means there’s been an 18% reduction in the average cost of using the network, which is commonly used by DeFi apps, and should help make it more widely used.
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