Bitcoin experience biggest price gain in month as cryptocurrency market recovers.
Bitcoin rallies 5% to $7,700, building steam after a tough few months for cryptocurrency.
The digital currency has surged by almost $2,000 over the last month.
The world’s largest and most popular digital currency rose 5 percent to a high of $7,770.58, according to data from CoinDesk, and is up roughly 20 percent in the past week. It broke above the $7,000 level for the first time in a month last Tuesday following news that asset-management giant BlackRock will set up a working group to explore cryptocurrencies and blockchain technology.
The latest gains also fall short of some analysts’ predictions, who forecast that bitcoin would rise above $10,000 in May and continue to climb.
They have also not been reflected across all cryptocurrency markets, with ethereum seeing its value drop by around 3 per cent since this time last week.
* Bitcoin is nearing $8,000 and building on last week’s 20 percent rally.
* The digital currency rose 5 percent to around $7,700 Monday after breaking above the $7,000 level for the first time in a month last Tuesday.
* Bitcoin pundits say news that BlackRock will look into cryptocurrencies and blockchain has helped prices, and investors are awaiting approval of a bitcoin ETF which could come as soon as August.
Grayscale, which manages $2 billion in assets, said in a report last week that it’s seeing more institutions interested in cryptocurrency products, which eToro’s Matthew Newton said adds to the long-term upside for bitcoin. He also pointed to anticipation surrounding approval of a bitcoin ETF, which the Securities and Exchange Comission is reportedly due to decide in August.
Bitcoin is still down more than 60 percent from its all-time high near $20,000 in December. It and other cryptocurrencies have come under global scrutiny this year amid thefts, frauds around initial coin offerings, market manipulation and its potential for money laundering.
The entire market capitalization for cryptocurrencies has dropped by more than 50 percent this year, according to CoinMarketCap.com.
Bitcoin’s dominance as the world’s leading cryptocurrency could also be challenged by startups in the space, such as the Goldman Sachs-backed Circle, which is planning to launch a digital currency tied to the US Dollar later this year.