Bitcoin breaks above $40,000, ethereum climbs toward $3,000
06:37, 26 May 2021
The mood on the cryptocurrency market has improved significantly this week after last week’s bloodbath. The recovery that started on Monday continued on Tuesday and Wednesday morning, taking the prices of the top crypto assets significantly higher compared with Sunday’s lows.
Bitcoin (BTC) broke the $40,000 mark for the first time in the last seven days and recorded a 24-hour gain of 5% on Wednesday morning (6:35 AM UTC). The leading cryptocurrency is now up almost 30% compared with Sunday’s low.
Ethereum (ETH) closed on $2,900 on Wednesday morning when it recorded a 24-hour increase of 9.2%. The price is already over $1.100, or 66%, higher than Sunday’s minimum.
Big names back crypto
Cryptocurrency traders are probably relieved to see that the market’s meltdown from its recent all-time highs has stopped for now. Several pieces of positive news, mainly coming from Coindesk’s Consensus 2021 conference, may have contributed to that.
On Monday, billionaire Ray Dalio, one of the most respected hedge fund managers, said he had “some bitcoin”. Moreover, he added that he’d rather hold bitcoin than bonds to hedge against inflation.
On Tuesday, Mike Durbin, the head of Fidelity Institutional, spoke about the firm’s increasing involvement in the crypto space as a result of client interest.
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Addressing energy issues
Another initiative that emerged at the beginning of this week, the Bitcoin Mining Council, is looking to change the narrative around the cryptocurrency’s energy use. Michael Saylor, the CEO of MicroStrategy – one of the biggest institutional bitcoin investors – revealed that he worked with Tesla CEO Elon Musk and several North American miners to create this organisation, which could publish bitcoin energy usage data.
The council aims to address concerns that the cryptocurrency is not environmentally friendly, one of the triggers for the recent drop in cryptocurrency prices. However, some bitcoin commentators fear the move could mask an attempt to centralise the decision-making process.
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Read more: Bitcoin up 20% from Sunday low, altcoins gain up to 50%
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