After last week’s sell-off, Bitcoin bulls are back, pushing the world’s most popular cryptocurrency above the $ 50,000 mark.
Bitcoin climbed back above $ 50,000, breaking through the key psychological level as bullish momentum returned after last week’s sell off.
The digital token climbed to 11% before offsetting some gains to trade around $ 50,900 at 9:51 a.m. in New York City, hitting the highest level in two weeks, according to data compiled by Bloomberg.
The cryptocurrency has been volatile with prices plunging 21% last week before recovering with the previous general rebound in global equities. On a technical basis, the GTI global strength indicator, which detects trend fluctuations, has started to curl higher, suggesting a bullish move for Bitcoin.
“With stimulus activity returning in the US and elsewhere – it’s very good for scarce assets like Bitcoin,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.
Meanwhile, more and more reputable investors are supporting crypto. Billionaire hedge fund manager Bloomberg reported on Tuesday night that Marc Lasry and former US Commodity Futures Trading Commission chairman Christopher Giancarlo had invested in crypto-asset and blockchain investment firm BlockTower Capital.
“Bitcoin now receives, for the most part, consistent approvals,” said Ed Moya, senior market analyst for OANDA. “You’re still in the early stages of this institutional interest and that’s why I think you’re probably going to get people to become a lot more open to cryptos.”
The investments point to a growing trend for the influx of institutional money into the digital space, which is simultaneously attracting the attention of regulators as the nascent industry seeks to carve out a niche in mainstream finance. The outlook for the cryptocurrency industry is still the subject of fierce debate. Supporters point to growing institutional adoption while critics claim Bitcoin is a giant bubble destined to burst as its 2017 boom and bust cycle.
On Tuesday, Gary Gensler, candidate for president of the US Securities and Exchange Commission, said ensuring that crypto markets are free from fraud and manipulation is a challenge for the agency.
Gensler, who served as chairman of the CFTC during the Obama administration, has been seen as a strong advocate for digital assets. He is a senior advisor to the MIT Media Lab Digital Currency Initiative and teaches blockchain technology and digital currencies.
“While the Bitcoin market reacted quickly to his comments, Gensler was largely positive about Bitcoin and cryptocurrencies,” said John Wu, president of blockchain technology company Ava Labs. “I hope the new administration will help drive innovation in blockchains, cryptocurrencies and digital assets, instead of stifling it.” – With the help of Joanna Ossinger and Kenneth Sexton.