Bitcoin rallied to above US$50,000 after Bank of America (BOA), strategists, backed cryptocurrency as a new asset.
This rally has brought prices to their highest level since September when El Salvador legalized cryptocurrency. Bitcoin rose by as much as 2.8% in New York’s early trading hours on Wednesday, October 6, to reach US$50.354.
According to the BOA strategists, the universe of digital assets is too large to ignore. “Our view is that there may be more opportunities than most people think.”
According to the BOA report, Wall Street is showing interest in crypto despite many controversy. China recently issued a blanket ban against transactions, and the United States financial watchdogs are currently investigating major crypto exchanges.
According to the BOA, regulation can be a long-term positive for crypto. The strategists stated that once rules are in place, there will be less uncertainty about how to invest crypto.
After a May meltdown that was caused by China’s clampdown crypto mining, Bitcoin is slowly returning to its prior highs.
According to Arcane Research, Bitcoin’s latest rally has seen it break through two resistance levels. It is now trading at higher end of its two month-long consolidation range.
For a time, the coin traded in the US$46,000 to US$48,000 range before finally breaking free. The report stated that the US$46,000-US$48,000 range is a strong support area and the coin could trade there for some time.
“The Bitcoin price has fluctuated quite a bit even recently, so when we see dips we often see it as an opportunity and investors moving into to buy those dips,” Grayscale Investments chief executive Michael Sonnenshein stated in an interview at the Bloomberg Invest Global conference.
“If they haven’t changed their fundamental belief or conviction in investing, and they can purchase an asset at 10%, 15%, or sometimes 20% cheaper than they could a few days ago, then that’s a compelling opportunity.”