Bitcoin, Ether bounce back after heavy weekend selloff

The selloff was mostly triggered by the news that People’s Bank of China is banning digital tokens

  
A Bitcoin digital currency ATM shop is seen in Marseille, France, February 7, 2021.

A Bitcoin digital currency ATM shop is seen in Marseille, France, February 7, 2021.

REUTERS/Eric Gaillard

After a wild week that saw billions of dollars wiped off the value of cryptocurrencies, Bitcoin edged upwards to cross the $38,000-mark on Monday. The cryptocurrency rose from less than $32,000 on Sunday.

Ether, the coin used on the Ethereum blockchain network, and the second largest cryptocurrency worldwide, rose from less than $1,800 on Sunday to over $2,300 on Monday.

The selloff was mostly triggered by the news that People’s Bank of China is banning digital tokens form being used as a form of payment.

Meanwhile the Wall Street is trying to make sense of the volatility in the cryptocurrency market.

Last week, when Bitcoin touched five month lows near $30,000, analysts from JP Morgan Chase suggested that large institutional investors were dumping Bitcoin in favor of gold.

Goldman Sachs, Bank of New York Mellon and State Street have recently announced plans to become active in different areas of the cryptocurrency market.

HSBC CEO Noel Quinn told Reuters that the bank has no plans to launch a cryptocurrency trading desk or offer the digital coins as an investment to customers, because they are too volatile and lack transparency.

(Writing by Seban Scaria seban.scaria@refinitiv.com ; editing by Daniel Luiz)

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© ZAWYA 2021


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