Bitcoin boom: Cryptocurrency surges by nearly 10 percent after huge plunge

Since the start of 2021, the value of bitcoin had been steadily increasing. The price of the digital currency has almost doubled in the first three months of this year.

However, on April 18 the value of Bitcoin dramatically plunged and continued to decrease until this week.

On Monday, the value appeared to be increasing almost as fast as it decreased earlier this month.

The price went up by almost 10 percent from Sunday to Monday.

On Sunday, one bitcoin was worth £35,375 and on Monday one bitcoin went up to £38,776.

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The dramatic fall came amid fears that US President Joe Biden could enforce a capital gains tax worth up to 43.4 percent on investments held for longer than a year.

Mr Biden is reportedly aiming to raise taxes on the wealthiest Americans to tackle inequality and help finance trillions of dollars into social spending.

However, some experts predicted last week that the President’s tax plans will not have a huge impact on Bitcoin.

Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper, told Reuters: "I don't think Biden's taxes plans will have a big impact on Bitcoin.

"Bitcoin has only gone up for a long time, it is only natural to see a consolidation. Traders are simply cashing in on winnings."

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