For the first time in three months, Bitcoin broke back above 50,000 dollars on Monday as investors piled back into the cryptocurrency on bargain-buying.
After bitcoin plunged from a record near 65,000 dollars in mid-April and trading in a range of about 30,000 to 40,000 dollars for many weeks, bitcoin has recovered. The largest cryptocurrency by market capitalization, reached as high as $50,152.24, the highest since mid-May, up 2.5%.
The electric car giant Tesla and various other high-profile investors including Twitter founder Jack Dorsey have indicated their support and flagged their interest in it.
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Bitcoin had started tumbling in May after touching an all-time high of nearly $64,000 in April. One of the key reasons that had triggered the downfall was China’s ban on financial institutions and payment companies providing services related to cryptocurrency transactions and warning against speculative crypto trading.
However, it has now risen more than 70 percent from the six-month lows below 29,000 dollars touched in June, and speculation is swirling that it could begin its push towards 100,000 dollars.
The other factor driving Bitcoin prices is that PayPal UK has said that it will allow customers in the UK to buy, sell and hold bitcoin and other cryptocurrencies starting this week.
As per the 2021 Global Crypto Adoption Index by blockchain data platform Chainalysis, the worldwide crypto adoption grew by 880% between June 2020 and July 2021.
