Bitcoin tops &$50,000 for the first time after months of weakness 

Bitcoin tops &$50,000 for the first time after months of weakness

Bitcoin’s price surged past $50,000 on Monday for the first time since May, but the rebound from a months-long slump later ran out of steam. Bitcoin has topped $50,000 for the first time since May as crypto prices continue an ongoing recovery from a disorderly rout just three months ago.

The largest virtual coin advanced 3.8% to US$50,272 as of 6.53am in New York, with other tokens including Ether and Cardano’s ADA also rising. 

It had risen as investors bet that the prospect of more U.S. stimulus spending would lead to further gains, and more mainstream financial services firms made moves in the nascent asset class.

Bitcoin has climbed 82% since hitting a yearly low of $27,700 in January.

Market sentiment also benefited from PayPal Inc’s announcement that it will allow UK customers to make crypto transactions. It is the first international expansion of PayPal’s crypto service beyond the US, and another hint at wider adoption of the industry.

In April, Bitcoin hit a record of almost US$65,000, driven by a tide of liquidity, fast-money bets, and optimism about growing demand from institutional investors. Supportive views from billionaire Elon Musk and the direct listing of digital-currency platform Coinbase Global Inc also fuelled optimism.

Others also believe the upswing could have further to go if more retail investors return to the market.

Meanwhile, Ether has also been climbing, boosted by an upgrade to its underlying network that signals a more constrained supply of the token. 

Ether was last up 1.97% at $3,305. The virtual coin has risen 91% since slumping to below $1,740 last month.

The ADA coin linked to the Cardano blockchain has surged of late into third spot on technological enhancements that may make the network more useful.

Damon Harrison
Market Analyst, IPG Group