Bitcoin tops $50,000 for the first time in a month

Bitcoin has topped $50,000 for the first time in a month after having risen sharply over the last week.

Bitcoin rallied above $50,000 as Bank of America Corporation strategists threw their weight behind crypto as a new asset class. The digital currency has been on a wild ride in 2021, topping $64,000 in April before plunging to below $30,000 in July.

The rally brings prices to the highest since early September when El Salvador rolled out the cryptocurrency as legal tender. Bitcoin was up 2.5% in early New York trading, and earlier touched $50,307.

The universe of digital assets is “too large to ignore,” wrote strategists including Alkesh Shah and Jessica Reif Ehrlich. “Our view is that there could be more opportunity than sceptics expect.”

“Bitcoin … regaining the $50,000 mark appears to be a culmination of a process that began as crypto trading activity started to bounce back late this summer,” Curtis Ting, crypto exchange Kraken’s managing director for Europe, said.

Novogratz, the founder of crypto investment firm Galaxy Digital, celebrated bitcoin’s run higher in a tweet Monday: “Crypto trades like no-one has it … the 4th quarter rally might have started,” he also said he was surprised and happy that bitcoin was rising even as tech stocks were hammered on Monday. During the last stock sell-off, bitcoin fell sharply as investors dumped riskier assets.

Despite increased adoption of bitcoin by consumers and the endorsement of cryptocurrencies by several top Wall Street firms and other financial giants, some sceptics still remain.

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