Bitcoin, after taking a week-long breather in its blistering 2021 bull run, has suddenly shot higher.
The bitcoin price briefly climbed past the closely-watched $50,000 per bitcoin level for the first time late on Monday evening, hitting $50,110 on the San Francisco-based exchange Coinbase and $50,240 on the Singapore-based crypto derivatives exchange Bybit before falling back.
Bitcoin’s surge higher, adding 30% over the last month and taking its year-on-year gains to around 400%, comes after reports an investment unit under Morgan Stanley MS is exploring a stake in bitcoin–the latest Wall Street banking giant to soften its stance on cryptocurrency.
The news topped a week that saw electric car maker Tesla add bitcoin to its balance sheet, Mastercard MA announce plans to open up its network to cryptocurrencies and BNY Mellon, the oldest U.S. bank, offer bitcoin and crypto support. Tesla’s shock announcement caused the bitcoin price to surge toward $50,000 at the beginning of last week—up from just under $30,000 since the start of 2021.
MORE FOR YOU
“The trend toward institutional adoption is increasingly clear and difficult for traditional markets to ignore,” David Russell, vice president of market intelligence at TradeStation, said in emailed comments.
“Recent news increases excitement toward bitcoin as an asset and therefore volatility. Countless investors have little exposure to bitcoin and now find themselves chasing at new highs. Things could get more interesting and dramatic, with traders waiting to jump on the next potential announcement.”
Meanwhile, digital asset investment funds have continued to attract investor cash as people seek exposure to bitcoin and cryptocurrencies.
Over the last week, bitcoin funds “saw inflows of $367 million as the trend of announcements by large corporations and funds using bitcoin as a treasury asset and investment continues,” James Butterfill, investment strategist at CoinShares, wrote in his latest market report.