Previously, Bitcoin had been facing a five-day losing streak, mostly fueled by the fact that the US government is considering raising long-term capital gains taxes to 43.4%.
Since the beginning of the year, Bitcoin has advanced 80% against the US dollar.
Some even consider that crypto alternatives will be able to compete with well-established fiat currencies as a store of value and medium of exchange.
It is believed that ultra-loose monetary policy stances, together with massive stimulus plans, could spark hyperinflation in Western countries and affect the credibility of traditional fiat alternatives as a store of value.
However, not everyone is optimistic regarding the future of cryptocurrencies.
India and China are two examples of this: while the former is looking to outlaw the distribution, holding and production of cryptocurrencies, the latter has been restricting mining in an attempt to reduce energy consumption and achieve carbon neutrality.
Recently, the idea that the US Department of the Treasury could accuse financial institutions of money laundering using cryptocurrencies spread across the markets, sparking fears.
Cryptocurrencies remain a risky investment due to their volatility, especially for retail investors, so sudden losses should not be discarded as impossible.
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