Bitcoin Gains Boost Crypto Stocks

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Concerns over the regulatory review slammed the price of Bitcoin earlier in the year. The time of dreams

Bitcoin bulls were granted a reprieve on Sunday night as the cryptocurrency briefly surpassed $ 50,000 for the first time in three months. The price remains well below its April peak of nearly $ 65,000, but investors are finding reason to come back.

As Bitcoin began to fall from its recent low of less than $ 30,000 in July, two recent events have helped push it above the $ 50,000 mark. Last week, Coinbase (ticker: COIN), the cryptocurrency exchange, announced that it would buy $ 500 million worth of crypto assets and that it plans to allocate 10% of its profits to a crypto wallet.

On Monday, PayPal (PYPL) unveiled an offer that would allow UK-based customers to buy, hold and sell cryptocurrencies, marking the company’s first international expansion of its crypto services.

In Monday morning trading, Bitcoin was just below $ 50,000 at $ 49,836.69. Stocks exposed to Bitcoin were up, but off peaks reached in pre-market trading. Coinbase rose 0.5%, PayPal gained 0.9% and MicroStrategy, an enterprise software company that recently issued bonds to buy Bitcoin, saw its shares rise 0.7%.

Bitcoin has been going through a rough patch in recent months. The cryptocurrency hit new highs earlier this year, but the price fell following a regulatory review in China and the prospect of the same in the United States and elsewhere.

Over the past few weeks, Bitcoin has seen the biggest cryptocurrency recovery in the market, according to Tony Sycamore, analyst at City Index. Just two months ago, Bitcoin was trading below $ 30,000, marking what technical analysts call a death cross, when an asset’s 50-day moving average falls below its moving average on 200 days. He says the rally is now facing resistance between $ 50,000 and $ 53,500,

Write to Carleton English at [email protected]

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