After Bank of America Corp. strategists endorsed cryptocurrency as a new asset class on Tuesday afternoon, bitcoin surged beyond $50,000 (R750,000) in the afternoon.
- Bitcoin surged beyond $50,000 (R750,000) Tuesday afternoon as Bank of America Corp. analysts backed cryptocurrency as a new asset class.
- Prices have risen to their greatest level since early September, when El Salvador became Bitcoin legal tender.
- Bitcoin was up 2.5 percent in late afternoon Johannesburg trade, having previously reached $50,307 USD (R756,000).According to strategists such as Alkesh Shah and Jessica Reif Ehrlich, the world of digital assets is “too big to ignore.” “
- According to the Bank of America research, despite its numerous problems, crypto is gaining momentum on Wall Street.
- Prices have risen by more than 60% from a low in July.
As a result of the rise, Bitcoin prices have reached their highest level since early September, when El Salvador declared the cryptocurrency legal cash. Bitcoin was up 2.5% in late afternoon Johannesburg trading hours, following reaching a high of $50,307 (R756,000) earlier in the day.
Strategists Alkesh Shah and Jessica Reif Ehrlich have said that the universe of digital assets is “too big to ignore.” “Our view is that there could be more opportunity than skeptics expect.”
Despite the numerous problems surrounding cryptocurrency, according to the Bank of America research, Wall Street is becoming more enthusiastic about it.
Just last month, China placed a blanket ban on cryptocurrency transactions, and financial regulators in the United States are looking into some of the largest cryptocurrency exchanges.
In the opinion of Bank of America, further regulation of cryptocurrency might be beneficial in the long term. The confusion around how to invest in cryptocurrency will be alleviated once laws are created, according to the experts.
The digital currency bitcoin has been steadily regaining its former highs since a crash in May that was caused by China’s crackdown on cryptocurrency mining. Prices have risen by more than 60% since reaching a low point in July.
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