Bitcoin prices exceed $ 50,000 for the first time in four weeks

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While there was no specific catalyst behind the recent bitcoin surge, digital asset investment firm CoinShares notes that investors have invested money in cryptocurrencies over the course of of the past seven weeks.

“We believe this decisive shift in sentiment is due to growing investor confidence in the asset class,” CoinShares said in a report on Monday.

This heightened confidence pushed bitcoin to rally nearly 20% last week. Other leading cryptocurrencies, including Ethereum, Binance, Solana, and Elon Musk’s favorite dogecoin, registered equally large gains.

Another expert pointed out that some of the recent macro concerns that have driven stocks down could also boost bitcoin.

“Inflation fears are driving a resurgence in crypto, and I don’t think that’s going to go away any time soon,” said Chris Kline, COO and co-founder of Bitcoin IRA.

Bitcoin and other digital currencies have seen a dramatic comeback in recent months.

Prices had plunged in late spring and summer amid concerns over a Chinese crackdown on cryptocurrencies and fears the United States would follow suit with tighter regulations.

But those US-centric fears eased after Federal Reserve Chairman Jerome Powell recently said the central bank did not intend to be as tough on bitcoin as China did. ‘has been.

Mainstreaming and the institutional investor factor

Meanwhile, large U.S. institutional investors are expected to increase demand as bitcoin and other cryptos become mainstream, Naeem Aslam, chief market analyst at AvaTrade, said in a report on Tuesday.

But he added that some large companies might “wait for the price to drop a little more before reaching large purchase orders” following the recent surge.

Despite the increased adoption of bitcoin by consumers and the endorsement of cryptocurrencies by several major Wall Street companies and other financial giants, some skeptics remain.

JPMorgan Chase (JPM) CEO Jamie Dimon, who has long been a vocal critic of bitcoin even as he continued to rally, criticized it again a few days ago during an appearance on the Axios show on HBO.

Dimon said the cryptocurrency, which now has a market value of around $ 950 billion, is “a bit of fool’s gold,” adding that “it has no intrinsic value. will regulate it thoroughly “.

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