Bitcoin prices rallied today, surpassing $ 55,000 and reaching their highest level in nearly five months.
The digital currency hit $ 55,322.12 around 9 a.m. EDT, according to data from CoinDesk.
At this point, the cryptocurrency was trading at its highest value since May 12, additional figures from CoinDesk reveal.
The price of bitcoin fell slightly after hitting that level, falling below $ 54,000.
However, the world’s most valuable digital currency by market cap has managed to hold onto the vast majority of its recent gains.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Following these latest price movements, several experts have looked into what motivated the recent rise in the cryptocurrency.
“I think Bitcoin’s rise this morning is a continuation of yesterday’s rally,” said Anthony Denier, CEO of Webull Financial trading platform.
“Yesterday there were important developments to solidify the position of Bitcoin and cryptocurrencies in general,” he noted.
“The first is that more and more banks are entering the crypto movement due to investor demand. US Bancorp has launched a cryptocurrency custody service for institutional investment managers, and Bank of America has started seeking coverage of cryptocurrencies and other digital assets.
Additionally, Denier referred to recent comments by U.S. Securities and Exchange Commission Chairman Gary Gensler in which he said the government agency is not currently planning to ban cryptocurrencies.
A potential ban “has been a major surplus for the asset,” he said.
In addition to these recent positive developments, some analysts have pointed out how much investor sentiment has changed in recent times.
Marc Bernegger, member of the board of directors of Crypto Finance Group, commented on these developments.
“After several bad news over the past few weeks, momentum has shifted over the past few days and it looks like the general outlook and macroeconomic situation has turned to the very bullish side of things.”
He noted that recently the outlook for bitcoin has “changed dramatically” and, as a result, “a good number of market players are expecting new all-time highs.”
Rik Willard, founder and CEO of Agentic Group, also offered his two cents on the situation.
“I think BTC is seeing a recovery after initial doubts about how the Chinese ban will affect global mining and its subsequent adoption,” he said.
“As some Chinese miners have moved to more favorable jurisdictions and the United States seems determined to increase mining capacity in places like Texas and wherever energy is cheapest, we are seeing the bulls coming back. “Willard continued.
Ben Armstrong, founder of BitBoy Crypto, also mentioned several recent developments and how, in his opinion, they would motivate investors to invest their money in digital assets.
“Faced with the Evergrande debacle, Facebook grows darker and talks about a trillion dollar coin … why would you want to put your money in mainstream finance?”
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.