Cryptocurrencies are again having a good run, with Bitcoin soaring above $50,000 for the first time in a month and smaller coins like Ethereum and XRP following suit.
The latest gains come as the world’s most famous digital currency slid to almost $40,000 in September as China issued a ban on cryptocurrency transactions.
Trading at around $52,300 this afternoon, after a near 5 per cent rise, Bitcoin is still some $13,000 away from the record high of $64,888 it hit in April, according to figures by Coindesk.
Rebound: Bitcoin has soared above $50,000 for the first time in a month this week
Smaller coins, which tend to move in tandem with Bitcoin, also rose this week, with Ethereum hitting a near three-week high of over $3,500 yesterday and XRP reaching $1.09.
Both of them have fallen back slightly today though, with XRP down 1.8 per cent to $1.05 and Ethereum down by 0.5 per cent to around $3,400.
Cryptocurrencies have been getting a boost from the US, with the chairman of the Federal Reserve, Jerome Powell, announcing last week that the US had no plans to ban them.
Then yesterday, the Securities and Exchange Commission (SEC) followed suit, with its chair Gary Gensler saying they had no intention of banning crypto either, pointing out that it would be up to Congress to decide.
Their remarks have come after China’s central bank announced last month that all transactions of crypto-currencies were illegal, effectively banning digital tokens such as Bitcoin.
China’s crackdown has weighed on cryptocurrencies, with Bitcoin also suffering after El Savador’s bumpy start to incorporating the digital coin as legal tender.
Trading at around $52,300 this afternoon, Bitcoin is still some $13,000 away from its record high of $64,888 in April
Interest in cryptos seems to have waned a bit among younger investors, but banks and financial institutions continue to launch new crypto services to meet an overall rising demand.
Yesterday, US Bancorp announced the launch of a cryptocurrency custody service for institutional investment managers who have private funds in the US and Cayman Islands.
Also this week, Bank of America published its first research coverage focused on cryptocurrencies and other digital assets.
‘This acceptance of cryptos makes them more mainstream which has led to a more correlated relationship with traditional assets, evidenced over the last few weeks as Bitcoin was following stocks lower on the back of concerns about the economy and the collapse of Evergrande,’ said Daniela Hathorn, an analyst at DailyFX.
‘But we may be at the start of a de-correlation as Bitcoin and most alt-coins have held gains over the last week despite weaker sentiment in the overall market.’
And added: ‘The gap between $50,000 and $55,000 is a challenging one, an area that halted and reversed the bullish momentum at the beginning of September, so the next few sessions are going to be crucial to the continuation of the bullish trend.’
Martha Reyes, head of research at digital asset prime brokerage and exchange Bequant, said: ‘The banks are capitulating one by one.
‘For those of us working in the space, the fact that it’s too big to ignore is hardly news, and the regulators certainly aren’t ignoring it.’
Meme crypto Shiba Inu climbs after Elon Musk tweets picture of his dog
Meme cryptocurrency Shiba Inu coin shot up by around 45 per cent in value on Monday.
And the rise has been put down to Elon Musk tweeting a picture of his dog.
Elon Musk’s tweet said to be behind the 45% jump in meme coin Shiba Inu
Musk, the boss of Tesla, bought a pet Shiba Inu in September, and called it Floki.
On Monday he tweeted a picture of the puppy with the caption ‘Floki Frunkpuppy’.
The coin is still worth below a penny, but it went from £0.00000570 on Sunday to £0.00001776 on Monday.
Today it’s still up 19 per cent to £0.00001679, according to Coindesk.