2018.04.0220:33:00UTC+00Bitcoin Rallies Back Above $7,000 Amid Stock Declines

Bitcoin prices climbed back up above $7, 000 on Monday after declining 25 percent in the previous week, as major U.S. stock markets experienced a downturn.

The digital asset increased by more than $500 from Easter Sunday, according to data from CoinDesk. Bitcoin reached a high of $7,108.20 on Monday and later declined $6,919. So far this year, the cryptocurrency is still down more than 50 percent.

Meanwhile, stocks tumbled on the first trading day of the quarter as Amazon weighs down on the broader tech sector. The Dow Jones Industrial Average declined over 450 points and the S&P 500 entered correction territory.

Digital currency prices have been under pressure in 2018 after news of regulatory crackdowns, major hacks and tech firms banning advertising and investor uncertainty regarding the looming tax season. But some investors continue to have a bullish outlook.

Bitcoin dropped 12 percent in late January after Facebook said it would ban all advertisements that promote cryptocurrencies to stop the spread of what it deemed to be "financial products and services frequently associated with misleading or deceptive promotional practices."

Bitcoin is also facing regulation. South Korean, Japanese and U.S. regulators have announced increased scrutiny of cryptocurrency trading in the last few months.

Tax season may also impact prices, and some analysts underlined the possibility for first-time investors to sell as they become aware of the fact the owe capital gains on 2017's digital currency trading profits.