The prices of the hottest digital currency, Bitcoin, has recovered from a major decline recorded last week as it clung to sharp gains on Monday to move back near the $4 000-level.
The most popular cryptocurrency started the week on a strong fashion as it tacked on 34% gain and settled at $3 964 in the afternoon close.
It was a sigh of relief for the digital currency market as investors have finally surpassed the initial shock of the announcement from the People’s Republic of China last week.
Last Friday, Bitcoin price pulled off a shocker as it closed down below $3 000-line after it finished to a record-low of $2 951.15 per US dollar, causing major fear that the Bitcoin bubble is on the brink of bursting.
This poor performance was driven by China’s crack down on cryptocurrencies as the world’s second largest economy stood firm on its decision to ban any Initial Coin Offering (ICO) activities as a means of fundraising.
Last week was the worst performance of Bitcoin this year as it gave up almost 15% since breaking past the $5 000-mark in early September.
Adding more pressure to digital currencies was the latest criticism from JP Morgan chief executive Jamie Dimon accusing Bitcoin as a ‘fraud’ and comparing its recent status to the 17th century’s tulip bulb mania.
Despite last week’s drama, Bitcoin remains the biggest digital currency in the market and is still enjoying almost 300% gain this year.