Bitcoin broke back above US$50,000 (RM211,475) today for the first time in three months as investors piled back into the cryptocurrency on bargain-buying.
The unit climbed around 2% to US$50,249.15 which is its highest since mid-May when it started to tumble on a range of issues including China’s crackdown on cryptocurrencies and Tesla CEO Elon Musk’s decision to stop accepting it on concerns about the environmental impact of mining.
Tesla, the electric car giant, has since indicated its support for bitcoin, while several other high-profile investors including Twitter founder Jack Dorsey have also flagged their interest.
It has now risen more than 70% from the six-month lows below US$29,000 touched in June, and speculation is swirling that it could begin its push towards US$100,000.
Rick Bensignor from Bensignor Investment Strategies, said today that it was “getting nearer the higher end of what I expect as a new trading range in the low-US$40,000s to low-US$50,000s”.
Bitcoin is still, for now, a long way off its record just below US$65,000 that it achieved in April this year.