Bitcoin hit $55,499 on Wednesday, close to a five-month high as Tuesday’s rally continued, pushing the price of the top cryptocurrency up 13 percent this week alone and 87 percent for the year.
Bitcoin was trading at $54,613.27 as of this writing,
A series of small developments in Washington, D.C. may have helped drive the rally, CNBC reported. On Friday, Federal Reserve Chairman Jerome Powell said that he has no plans to ban cryptocurrencies. On Tuesday, Securities and Exchange Commission chairman Gary Gensler mirrored Powell’s message in a hearing of the House Financial Services Committee, saying he has no plans to ban cryptocurrency — such a ban would be up to Congress.
Bitcoin’s price has moved in tandem with the stock market several times before, but many still see it as a safe haven and it held up Wednesday while equity markets fell in volatile October trading, CNBC reported.
Other coins, which tend to move in tandem with Bitcoin, were also up including Ether (up 1.5 percent to $3,434) and XRP (up 2.2 percent to $1.0656.
Banks and mainstream institutions that previously stayed away from crypto also helped drive the Bitcoin price rally.
On Monday, Bank of America published its first-ever research focused on cryptocurrencies and other digital assets. BofA thinks blockchain is the most exciting new market in a long time, according to its bullish new report, which examined cryptocurrencies, DeFi, dapps, NFTs and stablecoins.
On Tuesday, U.S. Bancorp announced that it had launched a cryptocurrency custody service for institutional investment managers who have private funds in the U.S. and Cayman Islands, Reuters reported.
“The banks are capitulating one by one,” said Martha Reyes, head of research at digital asset prime brokerage and exchange BEQUANT. “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.”
Listen to GHOGH with Jamarlin Martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles, and Biden. He talks about the risk factors for Bitcoin as an investment asset including origin risk, speculative market structure, regulatory, and environment. Are broader financial markets in a massive speculative bubble?