Bitcoin surpassed $50,000 for the first price in three months on Monday, as investors re-entered the cryptocurrency in search of a bargain.
The unit rose around 2% to $50,249.15, its highest level since mid-May when it began to fall due to a variety of factors such as China’s crackdown on cryptocurrencies and Tesla CEO Elon Musk’s decision to cease accepting it due to concerns about the environmental impact of mining.
Since then, the electric vehicle company has stated its support for bitcoin, and several other high-profile investors, like Twitter founder Jack Dorsey, have expressed an interest.
It has now gained more than 70% from its six-month lows below $29,000 in June, and talk is rife that it may soon begin its ascent beyond $100,000.
Bensignor Investment Strategies’ Rick Bensignor stated on Monday that it was “moving closer to the top end of what I estimate to be a new trading range in the low-$40,000s to low-$50,000s”.
Bitcoin is still a long way from its all-time high of just under $65,000 set in April.
Recall that, The overall market value of cryptocurrencies surpassed $2 trillion once more as bitcoin continued to rise as other cryptocurrencies such as Cardano, XRP, and Dogecoin climb.
According to CoinGecko, which tracks over 8,800 coins, the market worth of cryptocurrency increased to $2.06 trillion on Saturday. Bitcoin reached $48,152, its highest level since May 16, as it demonstrated staying power above its 200-day moving average.
“Bitcoin continues above its critical 200-day moving average,” Fundstrat strategists wrote in a note Friday.
The gains occurred despite the cryptocurrency industry’s failure to obtain a modification to crypto tax reporting standards in a U.S. infrastructure package, which left intact wording allowing extensive monitoring of virtual currencies in the measure passed by the Senate on Tuesday.
“The price of Bitcoin was surprisingly resilient in the wake of the news,” wrote NYDIG Global Head of Research Greg Cipolaro in a note dated Saturday.
“We interpreted this price action as extremely bullish,” and, “We think the recognition of the crypto industry by lawmakers was ultimately a legitimizing event, one that should give investors comfort that this industry is here to stay”.