Why bitcoin is nearing $50,000

Meltem Demirors, Coinshares chief strategy officer, joins ‘Power Lunch to discuss why crypto assets are rallying and if it will be more common for firms to hold crypto on their balance sheets. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Bitcoin hit $50,000 on Sunday to reach a more than 3-month high, as the cryptocurrency continues to rebound.

The digital coin rose above that level around 10:40 p.m. ET on Sunday, according to data from Coin Metrics. It last traded at $49,471.77 at 4:55 p.m. ET on Monday.

Bitcoin hit an all-time high over $64,000 in April but sold off heavily in June and July, even dipping below $30,000. One of the major reasons was renewed regulatory scrutiny from Chinese authorities which has forced bitcoin mining operations to shut down and move elsewhere.

But since mid-July, bitcoin has been on a steady rise.

In the last few days, two key announcements have been positive for the cryptocurrency space. Last week, Coinbase said it would buy $500 million in crypto on its balance sheet and allocate 10% of profits into a crypto assets portfolio.

On Monday, PayPal said it would launch its service to let people buy, hold and sell digital currencies, in the U.K.

Meanwhile, other digital coins were also higher. Ether was trading higher by about 2% at $3,330 Monday morning. Ethereum, the blockchain network powered by ether, activated a key upgrade earlier this month which helped lift the price.

Vijay Ayyar, head of business development at cryptocurrency exchange Luno, said there was a lot of buying around the $29,000 to $30,000 level when bitcoin was roughly at a 50% discount to April’s all-time high.

“Lots of large players took advantage of those prices,” Ayyar said, adding that bitcoin could move “to test all-time highs again.”

The value of the entire cryptocurrency market stood above $2.16 trillion on Sunday, according to data from Coinmarketcap. It crossed the $2 trillion mark for the first time since May earlier this month.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

Why bitcoin is nearing $50,000

Related Post:

About The Author

Kane Dane