The resurgence in virtual currency has once again sparked animal spirits among the crypto believers
Bitcoin once again hit the closely-watched $50,000 level in an ongoing recovery in the cryptocurrency market from a disorderly defeat just three months ago. The largest virtual coin rose a whopping 3.5 percent to nearly $50,093 in Asian trading Monday, while other tokens, including Ether and Cardano’s ADA, also rose. Bitcoin was last above $50,000 in mid-May.
The resurgence of virtual currencies has once again sparked animal spirits among crypto believers, bringing longer-term forecasts of $100,000 or more for Bitcoin back into vogue. Others see the speculative, volatile assets carving out a wider trading range for now.
Bitcoin is “closer to the top of what I expect to be a new trading range in the low $40,000 to low $50,000,” Rick Bensignor, chief executive officer at Bensignor Investment Strategies, wrote in a note Monday.
Bitcoin hit an all-time high of nearly $65,000 in April, fueled by a surge in liquidity, quick money bets and optimism about growing demand from institutional investors.
But later came more critical commentary, including about the environmental costs of the energy consumed by the computers underlying Bitcoin. An intensification of the cryptocurrency crackdown in China also worsened the mood. Bitcoin fell below $30,000 after May’s defeat.
With the recovery since then, the value of more than 9,000 digital tokens tracked by CoinGecko has reached about $2.2 trillion, from $1.2 trillion a month ago.
(Except for the headline, this story has not been edited by NewsMadura staff and has been published from a syndicated feed.)
