Bitcoin price surpasses $ 50,000 as rebound continues

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LONDON, Aug.23 (Reuters) – The price of Bitcoin topped $ 50,000 on Monday for the first time since May, continuing to rebound after a multi-month slump.

The world’s largest cryptocurrency rose to $ 50,341, investors betting the prospect of increased stimulus spending in the United States would lead to further gains, and more mainstream financial services firms made moves in the nascent asset class.

Bitcoin has risen 81% since hitting an annual low of $ 27,700 in January.

Meanwhile, the price of rival cryptocurrency ether rose 2.8% to $ 3,337. The virtual coin has risen 91% since it fell below $ 1,740 last month.

The cryptocurrency recovery comes as some more established financial services companies offer their customers access to virtual coins. PayPal Holdings Inc said on Monday that it would allow UK customers to buy, sell and hold bitcoin and other cryptocurrency starting this week.

Some traders believe the bitcoin market has yet to see the full return of retail investors, suggesting that the current recovery may still have a way to go.

“The last time bitcoin was at $ 50,000, the trends for Google (a tracking website displaying searches for Bitcoin) were much higher than they are now,” said Marcus Sotiriou, a trader for the broker. UK-based digital asset firm GlobalBlock, in a note.

“This suggests that the euphoria of retail has not yet entered the market and that bitcoin still has a long way to go in this market cycle.” (Reporting by Anna Irrera, edited by David Holmes)

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