(Kitco News) The crypto space rebounded on Monday after seeing another massive selloff over the weekend, with billions wiped out.
Bitcoin rose nearly $8,000 in just 24 hours and was trading at $38,027.11, up 13.08% on the day. On Sunday, the popular cryptocurrencies tumbled below $32,000.
Ethereum, the second most popular cryptocurrency, rose from less than $1,800 to over $2,400 from Sunday to Monday. At the time of writing, it was trading at $2,414, up 24.90% on the day.
Dogecoin was also in the green, last trading at $0.33, up 12.59% on the day.
Overall, the majority of the crypto space was in the green after reporting significant losses across the board over the weekend.
The selloff trigger was reports of tighter regulations coming from China, Hong Kong, and the U.S.
China called for tighter regulations on crypto mining and trading on Friday. The statement came from China’s Vice Premier Liu He and the State Council, saying that it is needed to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”
This came after China already announced that it would ban financial and payment institutions from providing crypto services.
Hong Kong’s authorities also said on Friday that crypto exchanges would have to be licensed by the city’s regulator and will be able to provide services only to professional investors. Changes to the law could be seen as soon as the upcoming 2021-22 session of the city’s legislative assembly, Reuters reported.
“Confining the services of a VA [virtual assets] exchange to professional investors…. is appropriate at least for the initial stage of the licensing regime,” Hong Kong’s Financial Services and the Treasury Bureau (FSTB) said.
On top of that, the U.S. Treasury proposed to enhance tax compliance, with a new requirement to report any crypto transfer of at least $10,000 or more to the IRS.