Bitcoin falls due to the Evergrande crisis in China 0:52
New York (CNN Business) -
The bitcoin whirlwind continues.
The price of the world's most valuable cryptocurrency soared above $ 50,000 this Tuesday morning, the highest level in nearly four weeks.
Although there was no specific catalyst driving bitcoin's recent rise, digital asset investment firm CoinShares notes that investors have been pouring money into cryptocurrencies for the past seven weeks.
"We believe this decisive shift in sentiment is due to growing confidence in the asset class among investors," CoinShares said in a report on Monday.
This hamster's cryptocurrency portfolio is beating the market
That increased confidence boosted bitcoin nearly 20% in the last week.
Other major cryptocurrencies, such as ethereum, binance, solana, and Elon Musk's favorite dogecoin, have seen similar gains.
Another expert pointed out that some of the recent macroeconomic concerns that have undermined stocks could also be driving bitcoin.
"Fears of inflation are driving a resurgence in cryptocurrencies, and I don't think that will go away anytime soon," said Chris Kline, COO and co-founder of Bitcoin IRA.
In recent months, bitcoin and other digital currencies have seen an impressive comeback.
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Prices plummeted in late spring and summer on concerns that China would crack down on cryptocurrencies and the possibility that the United States would follow suit with stricter regulations.
But US-centric fears have lessened after Federal Reserve Chairman Jerome Powell recently said that the central bank has no plans to be as tough on bitcoin as China.
New setback to cryptocurrencies in China 0:56
Bitcoin and the institutional investor factor
Meanwhile, large US institutional investors are likely to increase their demand as bitcoin and other cryptocurrencies go mainstream, Naeem Aslam, AvaTrade's chief market analyst, said in a report on Tuesday.
But he added that some of the major companies may be "waiting for the price to drop a bit more before launching big buy orders" after the recent rise.
Despite the increasing adoption of bitcoin by consumers and the endorsement of cryptocurrencies by several of the major Wall Street companies and other financial giants, some remain skeptical.
JPMorgan Chase CEO Jamie Dimon, who has long been a critic of bitcoin even as it has continued to rise, attacked it again a few days ago in an appearance on HBO's "Axios."
Dimon said the cryptocurrency, which now has a market value of about $ 950 billion, is "fool's gold," adding that "it has no intrinsic value. And regulators are going to regulate it as much as possible."
Bitcoin
