Bitcoin on Tuesday pushed above $50,000 for the first time in six days, as it continued to recover from last week’s 21% sell-off, the most since the coronavirus-fueled rout of March 2020.
Bitcoin (BTC) traded around $49,444 as of 12:37 UTC (7:37 p.m. ET) and cooling slightly, having risen to a 24 hour high above $50,200.
The price of the largest cryptocurrency has gained 6.8% over the previous 24 hours. Bitcoin’s 24-hour range: $45,741.74-$50,213.03
Growing Support For Bitcoin
The gains came amid new signs of adoption of digital-asset technologies. Citigroup, one of the biggest U.S. banks, wrote that the digital currency was at a “tipping point” as more institutions adopt the cryptocurrency.
Additionally, Google Finance has added a data tab on cryptocurrencies. And Michael Saylor’s MicroStrategy, a prominent bitcoin buyer via its corporate treasury, added another 328 BTC (worth $15 million), bringing the company’s hoard to 90,859.
The cryptocurrency has been facing high volatility, with the price falling 21% in the seven days through Sunday, the most significant weekly drop since March 2020.
Investors have related the rising interest in cryptocurrencies to the rising U.S. government bond yields that signal heightened prospects for inflation, which could theoretically lead to an early unwinding monetary stimulus by the Federal Reserve.
Central-bank stimulus has fueled concerns of inflation over the past year, and many big investors say that bitcoin might serve as a hedge against rising consumer price.
Trader and analyst Alex Kruger said the cryptocurrency’s pullback has ended for now, and prices could rise this week; however, a fresh drop can be seen later if the Fed fails to keep yields under control.