Today, Bitcoin has been able to recover to its highest level in more than two months. The recent price surge marked a wider revival for cryptocurrencies following a rough start to the year.
According to the bitcoin price index of Coindesk, the largest cryptocurrency in the world rose to more than $8000 earlier in the day in a feat that was not seen since late in May, while also enjoying the highest control of the cryptocurrency market since December of 2017, soaring to 47 percent.
The demand for ethereum, bitcoin, litecoin and other virtual currencies has been fuelled by various reports that the Securities and Exchange Commission (SEC) of the United States of America is set to approve a cryptocurrency exchange-traded fund, opposing recent concerns that there will potentially be stricter global regulations on the digital currencies.
The news that a number of heavyweight financial establishments are starting to invest in cryptocurrencies has also pushed the renewed confidence, with reports that Blackrock, the asset management giant, is looking into in investing in the cryptocurrency markets.
Last week, BlackRock confirmed that it has set up a working group to look into cryptocurrencies and blockchain, its underlying technology. a source familiar with the matter told reporters that the said working group has existed since 2015.
A revival such as this one comes a month after Bitcoin dropped to lows of approximately $5825, following a widely-reported hack on Bithumb, a cryptocurrency exchange in South Korea, placed tremendous pressure on regulators to demand some improvements from crypto-trading venues.
However, the virtual currency has yet to be able to return to its former highs of almost $20,000 that were recorded late last year.
The managing partner at Fundstrat Global Advisors, Tom Lee, stated: “The trajectory of the bitcoin narrative has inflected.”
He added: “We see potential for inflows of fiat into crypto which supports higher prices.”