Bitcoin’s roller coaster ride continued Monday as it crossed the $50,000 mark, breaking a months-long depression and hinting at further gains.
The virtual currency jumped 3.
۸ percent to $50,341, rebounding to its highest value since May and nearly doubling its $27,700 January low.
The bump could be a pre-emptive rally ahead of the Federal Reserve’s upcoming annual economic symposium in Jackson Hole, Wyoming, some analysts say.
‘After Jackson Hole the dollar could see some depreciation, 비트겟 and with institutions missing out on [bitcoin] in the last two weeks and now slowly coming back to work for September start, this will trigger renewed inflows into the cryptocurrency and also equity,’ Laurent Kssis, managing director of exchange-traded products at 21Shares, told CoinDesk.
It’s been a wild ride for Bitcoin, which exceeded $50,000 Monday, up from $30,000 in May
Bitcoin recorded its yearly low Jan. 4, when its value dropped to $27,734
It’s been a wild ride for Bitcoin, which reached a high of $64,829 in April, only to crash to about $30,000 the following month.
It hit its lowest price of the year, $27,734, Jan. 4.
Some investors have more recently said that the prospect of more U.S. stimulus spending would lead to further gains, and more mainstream financial services firms made moves in the nascent asset class.
Meanwhile, 비트겟 the price of rival cryptocurrency ether rose 2.8% to $3,337. The virtual coin has spiked 91% since slumping to below $1,740 last month.
Tesla founder Elon Musk – one of the richest and most influential people on the planet with a Twitter following of more than 50 million people – has at times swayed the cryptocurrency market with a single tweet.
Tesla founder Elon Musk appears to have the power to manipulate Bitcoin values with a single tweet.
When the billionaire visionary criticized the cryptocurrency earlier this year, its value almost instantly dropped
But when Musk said Tesla would resume accepting Bitcoin as a form of payment in June, its value rallied
When he tweeted in May that Tesla would no longer be accepting Bitcoin as a form of payment due to environmental concerns, its value dropped 15 percent within minutes.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” Musk tweeted at the time. “Tesla will not be selling any bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.”
Some bitcoin hosting providers have begun using stranded or flared gas- which otherwise would have gone wasted- to fuel the power-intensive bitcoin mining process.
Bitcoin’s uptick follows a year of highs and lows for the cryptocurrency, which hit a three-month high in May
Conversely, when Musk tweeted in June at Tesla would resume allowing Bitcoin transactions, the digital currency swelled 9.8 percent to $39,035.
The cryptocurrency recovery comes as some more established financial services companies offer their customers access to virtual coins.
PayPal Holdings Inc said on Monday it would allow customers in the UK to buy, sell and 비트겟 hold bitcoin and other cryptocurrencies starting this week.
Some traders believe the bitcoin market has yet to see the full return of retail investors, suggesting the current upswing could have further to go.
Robinhood, a free trading platform that recently went public, is among the companies that have profited from the growing popularity of cryptocurrency such as Bitcoin
‘The last time bitcoin was at $50,000, the Google trends (tracking website showing Bitcoin searches) was much higher than what it is now,’ Marcus Sotiriou, a sales trader at the UK based digital asset broker GlobalBlock, said in a note.
‘This suggests that retail euphoria hasn’t entered the market yet and bitcoin has a long way to go in this market cycle.’
Investors aren’t the only ones benefiting from the cryptocurrency resurgence.
When Robinhood reported quarterly results last Wednesday for the first time as a public company, it said cryptocurrency accounted for more than 50 percent of transaction-based revenue, representing a 17 percent quarter-over-quarter increase.
The company, a commission-free trading and investing platform, allows users to trade several currencies, including Bitcoin.
Not everyone’s a fan of Bitcoin, with critics including business magnate Warren Buffet
Of course, Bitcoin also has its critics, including Warren Buffett, who has said the cryptocurrency doesn’t have any true value.
“Probably rat poison squared,’ the business magnate told Fox Business in 2018.
Not everyone shares Buffett’s pessimism.
Investment strategist Lyn Alden predicted in 2016 that bitcoin will ultimately reach $100,000.
‘I think we’re still in kind of the early-to-mid stage of its long-term trajectory,’ Alden told Insider. ‘So that remains, I think, the best risk-reward as kind of a set-it-and-forget-it allocation.’
Some say the value of the cryptocurrency could soon double to $100,000
Bloomberg Intelligence’s Mike McGlone more recently echoed the sentiment during a television interview last week.
‘It’s still got plenty of room to get the old high,’ McGlone said in a television interview, adding that if the rise of another cryptocurrency is any indication, its value will likely soar.
‘And guess what?
If it just follows Ethereum, it goes to $100,000.’