A continuing recovery in bitcoin has put the largest cryptocurrency on course for its longest winning streak this year.
The virtual coin rose as much as 5.8% to top US$40 000 and was trading at $39 900 as of 10.30am in Singapore. It’s advanced for eight straight days. Other coins including second-ranked Ether climbed.
“The current momentum is strong” and $45 000 is in sight but a conclusive break above $50 000 “will take some doing”, Pankaj Balani, CEO of crypto derivatives exchange Delta Exchange, wrote in a note on Tuesday.
Bitcoin remains far below its mid-April high of almost $65 000. But bulls have taken heart from recent positive comments from billionaire Elon Musk and Ark Investment Management’s Cathie Wood, as well as speculation over Amazon.com’s potential involvement in the cryptocurrency sector. The token soared on Monday as some traders exited leveraged bets on declines.
For now, these narratives have taken the focus away from criticism of bitcoin for the environmental cost of the energy consumed by the servers underpinning it. Regulators in China, the US and Europe are also increasingly cracking down on cryptocurrencies or considering harsher rules. — Reported by Joanna Ossinger, (c) 2021 Bloomberg LP