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As it recovers from one of the most severe dips in its history, the price of bitcoin has returned above $51,000, a new one-week as investors' risk appetites are being reignited.
Bitcoin was trading below $44,000 earlier this week, having hit an all-time high the week before above $58,000. Its rebound suggests the third greatest price rally in its history may be underway. The token rallied for 12 straight hours, gaining over $3,000 after a 2.9 percent dip on news that Gary Gensler, nominee for chairman of the U.S. Securities and Exchange Commission, said that making sure crypto markets are free of fraud and manipulation is a challenge for the agency.
“While the Bitcoin market reacted quickly to his comments, Gensler was largely positive about Bitcoin and cryptocurrencies,” said John Wu, president of blockchain technology firm Ava Labs. “I’m hopeful the new administration will help foster innovation in blockchains, cryptocurrencies, and digital assets, instead of stifling it.”
Billionaire venture capitalist Tim Draper, who has been prominent in the crypto space, predicted that bitcoin could eventually be worth $5 million per coin – a comment that sparked further investor interest and fear of missing out on the high-risk digital asset.
Tim Draper once predicted bitcoin's rise from $400 to $10,000 within three years. This was largely dismissed by people but happened only a few weeks later than his predicted time. Now, investors do not want to miss out on another possible 100-fold growth predicted by the billionaire.