Bitcoin, Ethereum are trying a optimistic begin to the week after wild falls

A visual representation of digital currencies.

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The crypto market rose faster on Monday after a week of hell that saw billions of dollars wiping the value of bitcoin and ether.

Bitcoin price rose to $ 38,000 on Monday after falling to less than $ 32,000 on Sunday. Bitcoin rose 6.5% to $ 37,635 in the 24 hours leading up to 8 a.m. ET, according to CoinDesk. The market capitalization of the world’s most popular cryptocurrency was around USD 703 billion.

Ether, the world’s second most popular cryptocurrency, rose from less than $ 1,800 on Sunday to over $ 2,300 on Monday. According to CoinDesk, the company was trading at $ 2,362 at 8:00 a.m. – up 10.6% in 24 hours and a market cap of around $ 274 billion.

Dogecoin also showed signs of recovery in other countries: the price rose from 24 cents on Sunday to 33 cents on Monday.

By and large, the crypto market was a sea of ​​green on Monday, with only a few lesser-known coins in the past 24 hours.

The crypto sell-off last week came after authorities in China and the US tightened regulations and tax compliance on cryptocurrencies.

Chinese authorities on Friday called for stricter regulation of crypto mining and trading, and the U.S. Treasury Department announced on Thursday that it would require stricter compliance with the IRS by crypto.

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Bitcoin fell more than 30% on Wednesday to nearly $ 30,000, its lowest price since late January, according to Coin Metrics. The cryptocurrency peaked at $ 65,000 in April.

The sell-off was a major reversal in the cryptocurrency that seemed to be gaining traction among major Wall Street banks and public companies. However, this month Bitcoin was hit by a number of negative headlines from major influencers and regulators.

Tesla CEO Elon Musk, who fueled positive sentiment when his company announced in February that it had bought $ 1.5 billion worth of Bitcoin, took a blow earlier this month when he announced that the automaker had stopped buying vehicles using the cryptocurrency due to environmental issues.

Musk then sent mixed messages about his position on Bitcoin, implying in a tweet that Tesla may have sold its holdings, only to later clarify it hadn’t.

“The asset class remains very volatile, with the potential for significant price movements resulting from a single tweet or public comment,” said CIBC analyst Stephanie Price in a statement on Thursday.

A JPMorgan report showed that large institutional investors ditched Bitcoin in favor of gold, raising questions about institutional support for the cryptocurrency.

– Additional coverage from CNBC’s Hannah Miao.

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