Bitcoin Shot Above $50,000 For The First Time In 4 Weeks

October 5, 2021

The whirlwind ride for bitcoin continues. The price of the world's most valuable cryptocurrency soared above $50,000 Tuesday morning — the highest level in nearly four weeks.

Although there was no specific catalyst driving bitcoin's recent surge, digital asset investment firm CoinShares notes investors have been plowing money into cryptocurrencies for the past seven weeks."We believe this decisive turnaround in sentiment is due to growing confidence in the asset class amongst investors," CoinShares said in a report Monday.

That increased confidence has pushed bitcoin to rally almost 20% in the past week. Other top cryptocurrencies, including ethereum, binance, solana and Elon Musk favorite dogecoin, have enjoyed similarly large gains.

Another expert pointed out that some of the recent macro concerns that have dragged down stocks could also be boosting bitcoin."Inflation fears are driving a resurgence in crypto, and I don't think that's going away anytime soon," said Chris Kline, chief operating officer and co-founder of Bitcoin IRA.

But he added that some top firms may be "waiting for the price to drop a little more before they hit big buy orders" following the recent surge. Despite increased adoption of bitcoin by consumers and the endorsement of cryptocurrencies by several top Wall Street firms and other financial giants, some skeptics remain.

JPMorgan Chase (JPM) CEO Jamie Dimon, who has long been a vocal critic of bitcoin even as it has continued to rally, bashed it again a few days ago in an appearance on the Axios show on HBO. Dimon said the cryptocurrency, which now has a market value of about $950 billion, is "a little bit of fool's gold," adding that "it's got no intrinsic value. And regulators are going to regulate the hell out of it."

SOURCE:CCN