After Bank of America declared that cryptocurrency was “too large to ignore” as a digital asset, Bitcoin rallied to around $50,000, its highest since early Sept., as digital coin prices climbed despite tougher regulatory scrutiny.
A number of factors are driving the whirlwind ride of Bitcoin, as it rose to the top of the world’s most valuable cryptocurrencies on Tuesday morning soaring above $50,000, its highest level in four weeks, CNN reported.
Although there was not a single catalyst, bitcoin certainly received a boost following a report from a Bank of America in which their strategists acknowledged crypto as an asset class, deeming digital assets “too large to ignore.”
In the past week, Bitcoin has rallied 20 percent.
In early September, El Salvador declared bitcoin as legal tender, causing bitcoin to rise as much as 2.8% in New York, reaching $50,369.
Large gains have been seen by a number of other top cryptocurrencies, including Elon Musk favorite Dogecoin, as well as Ethereum, Binance, and Solana, as confidence spreads beyond Bitcoin.
Several top Wall Street firms and other large financial institutions are showing increased adoption of bitcoin.
“Our view is that there could be more opportunity than skeptics expect,” wrote Bank of America strategists, which included including Alkesh Shah and Jessica Reif Ehrlich, Bloomberg reported.
According to digital asset firm CoinShares, investors have been pouring money into cryptocurrencies for the past seven weeks. While in a report on Monday, CoinShares cited growing confidence among investors in viewing crypto as an asset class.
Another expert, Chris Kline, chief operating officer and co-founder of Bitcoin IRA said the resurgence in crypto investments is being driven by inflation fears.
And yet another expert believes that recent macro concerns that have caused stocks to drop may have shifted investment into bitcoin.
While Bank of America sees bitcoin favorably, Jamie Dimon, CEO of J.P. Morgan Chase, remains a vocal critic of the cryptocurrency, despite its current market value of $950 billion.
“[It’s] a little bit of the fool’s gold,” said Dimon regarding bitcoin. “It’s got no intrinsic value. And regulators are going to regulate the hell out of it.”