Bitcoin rose to more than 50, 000 US dollars, before Bank of America CorporationStrategists also support the idea that cryptocurrency is a new asset class.
Bitcoin prices are at their highest level since El Salvador adopted Bitcoin as legal tender in early September. Bitcoin rose 2.8% to $50354 in early trading in new York on Tuesday.
Bank of America Corporation strategists such as Alkesh Shah and Jessica Reif Ehrlich write that the digital asset sector is "too big to ignore". "We think there may be more opportunities than skeptics expect."
Bank of America Corporation's report shows that, despite the controversy, Wall Street's enthusiasm for cryptocurrencies is growing. Us financial regulators are investigating some of the largest cryptocurrency exchanges.
Bank of America Corporation believes that in the long run, more regulation may be good for cryptocurrencies. Once the rules are established, strategists write, the uncertainty of investing in cryptocurrencies will be eliminated.
Bitcoin has been slowly recovering to its previous highs, with prices up more than 60 per cent from their July lows.
With the latest rally, Bitcoin has broken through two key resistance levels and is now on track in a two-month consolidation range, according to a report by Arcane Research. Bitcoin finally broke through after hovering around the $45000 line for some time, which means that the range of $46000 to $48000 is a strong support level, and Bitcoin is likely to stay in the region for some time, the report said.
"the price of Bitcoin has fluctuated considerably even recently, so when we see the price drop, we usually think of it as an opportunity and expect investors to buy on the bargain," Michael Sonnenshein, chief executive of Grayscale Investments, said in an interview at the Bloomberg Global Investment Forum. "if they don't change their view or belief about a particular investment at all, but it can be 10% cheaper than it was a day or two ago, 15% cheaper than it was a day or two ago, and sometimes 20% of the price to buy the asset, then this is an irresistible opportunity."