Bitcoin boosted to about $50,000 as Bank of America analysts threw their support behind cryptocurrency as a new class of asset.
The gain pushes prices to the highest since early Sept., when El Salvador launched the cryptocurrency as its legal tender. Bitcoin increased by as much as 2.8% in NY to get to $50,369.
The universe of digital assets is “too big to ignore,” said the strategists including Andrew Moss and Alkesh Shah. “Our view is there is more opportunity than skeptics believe they will see.”
The BoA report reveals that enthusiasm for cryptocurrency is getting traction among investors despite its controversies. And just last month, China gave a total ban on transactions and United States financial watchdogs are looking into some of the largest crypto exchanges.
In the opinion of BoA, more regulation might be a positive thing for cryptocurrency in the long run. Once rules are created, the uncertainty could be lifted, the strategists said.
Bitcoin has been slowly going back to its past highs after a slowdown back in May that was caused by China’s crackdown on crypto mining. Prices are higher than 60% since the July low.
With its recent rally, Bitcoin has broken through two crucial resistance levels and the crypto is now selling at the top end of its two month range, as reported by Arcane Research. The digital coin was around $45,000 for some time before finally breaking through. This means the $46,000-$48,000 area is a good support level and the coin might trade in this area for some time, Arcane said.
Katie Stockton, the founder of FairLead Strategies, said that the crypto might soon be testing its April all-time high close to $65,000.
“We believe short-term conditions will be seen long enough for a test of minor resistance close to $52.9K, a breakout higher would be for the all-time record high,” she said.
“The Bitcoin price has moved a lot recently and so when we witness dips, we usually see this as an opportunity to buy the dips,” Grayscale CEO Michael Sonnenshein stated during his recent interview.
Author: Steven Sinclaire