Bitcoin rebounds 12% after reports on JPMorgan's crypto asset fund

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Bitcoin rebounds 12% after reports on JPMorgan's crypto asset fund

On Monday, Bitcoin, the original cryptocurrency which had spiked to a record peak close to $65,000 on April 14, gained as much as 12 per cent, snapping a latest cohort of five straight session of losses following reveal of a media headline that underscored the leading US lender JPMorgan Chase & Co had been brewing off a plan to proffer a ‘controlled’ Bitcoin fund to cash in.

In point of fact, latest uprising in Bitcoin’s valuation, which had soared to a record $2 trillion a couple of weeks earlier, followed a mass-scale slump last week, while over the weekend, bitcoin, the most popular digital asset, fell below a critical psychological support level of $50,000 for the first time since early-March after media headlines had revealed the US President Joe Biden would propose to nearly double up tax burdens on wealthy Americans’ investments, eventually sending shockwaves across global equity markets alongside cryptocurrencies over frets that a rise of capital gains in taxation above 43 per cent from a present 23 per cent on wealthy American individuals earning above $1 million, would lead to a havoc-scale outflux of fresh liquidities from both equity and digital currency markets.

Bitcoin soars above 12 per cent on JPMorgan bitcoin fund

In tandem, in the day’s torrential high-tide in bitcoin that was last trading above 12 per cent in late-afternoon US trading hours to $53,873.80, came against the backdrop of a report from a crypto-related website CoinDesk, which had quoted unnamed sources familiar with the subject-matter as saying earlier in the day that JPMorgan had been working out an actively managed bitcoin fund which would allow certain clients to invest on crypto assets as beforementioned.

Apart from bitcoin, the digital asset’s smaller rival such as Ethereum alongside Ripple were last trading above 12 per cent and 20.4 per cent respectively. Although, bitcoin had shrugged off just a notch shy of 20 per cent of its April 14 record trough of nearly $65,000, the crypto asset has still been up more than 80 per cent this year thus far, mostly fuelled up by widespread optimism of a mainstream adoption of crypto assets.