Animal spirits have revived in the market after Bitcoin prices surged more than 30 per cent in the past seven days to their highest level since May.
This rise and the recent traditional assets such as stocks, bonds and gold face Qualcomm IncThere is a sharp contrast between inflation and fears of a slowdown in economic growth. Bitcoin rose 5 per cent to $54079 as of 10:13 in New York, about $9331 below its all-time high in mid-April.
Optimists point out that cryptocurrency itself seems to be increasingly recognized on Wall Street as an asset class, and comments from US regulators have allayed concerns about tougher regulation.
The bulls showed "incredible resilience" and "historic highs don't seem far away," Craig Erlam, senior market analyst at Oanda, wrote in a report.
Other cryptocurrencies are also rising, with the etheric currency, the yen, the Solana and the dog currency all rising sharply in the past seven days, according to CoinGecko. Since October, bitcoin has traded 2/3 more than ethercoin, according to the cryptocurrency exchange Kraken.
Now that Bitcoin is over $50, 000, "we expect this bull market to push its price near its peak in the fourth quarter," said Leah Wald, chief executive of alternative asset manager Valkyrie Investments.