Bitcoin jumps 20% to six-week high

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The price of bitcoin hit a six-week high on Monday, with some investors attributing the rally to short positions being liquidated and speculation that Amazon. com Inc. could venture into digital currencies.

Bitcoin climbed to $ 39,112.05, up more than 20% from its 5 p.m. EDT level on Friday, according to CoinDesk, reaching its highest level since mid-June. Ether, its rival currency, jumped more than 16%.

Recent bullish comments from leading cryptocurrency supporters have helped bolster the price gains. Tesla Inc. chief executive Elon Musk last week said he and his rocket company, SpaceX, held bitcoin, despite concerns about its environmental impact. Mr Musk also said Tesla would likely accept cryptocurrency as a payment again if the generation process, known as mining, becomes less reliant on fossil fuels.

There has been a lack of good news in the cryptocurrency market over the past two months, said Bobby Lee, founder and CEO of Ballet, a cryptocurrency hardware wallet. Now they are starting to spread, so investors and speculators are taking this opportunity to strengthen their positions and buy back bitcoins, resulting in a pretty dramatic increase in the price, added Lee, who divides his time between Shanghai and Las Vegas.

Bitcoin is still around 40% below its high of nearly $ 65,000 in mid-April. The following month, China’s renewed efforts to crack down on bitcoin mining and trading contributed to a sharp drop in prices.

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