Bitcoin rises 6.54% to $57,098.08

Cryptocurrencies suffered hefty losses last week amid fears that Joe Biden plans to raise capital gains taxes

Bitcoin rose 6.54% to $57,098.08 on Friday, adding $3,504.11 to its previous close.

Bitcoin, the world's biggest and best-known cryptocurrency, is up 105.9% from the year's low of $27,734 on January 4. It is down 12% from the year's high of $64,895.22 on April 14.

Ether, the coin linked to the ethereum blockchain network, rose 1.06 % to $2,787.35 on Friday, adding $29.29 to its previous close.

Cryptocurrency crime drops in 2020 but 'DeFi' breaches rise

Bitcoin and other cryptocurrencies suffered hefty losses last week amid fears that US President Joe Biden's plan to raise capital gains taxes will curb investment in digital assets.

But while social media lit up with posts about the plan hurting cryptocurrencies, and individual investors complaining about losses, some traders and analysts said declines are likely to be temporary.

India to launch its own cryptocurrency

There has been growing retail and institutional investor acceptance of digital currencies as a legitimate asset class. That has coincided with a surge in online trading in stocks and crypto by retail investors, stuck at home with extra cash because of the Covid-19 pandemic.