Bitcoin Rises This Week To $ 51,000, The Highest Since May

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A bitcoin exchange shop in downtown Krakow, Poland.

Artur Widak | NurPhoto | Getty Images

The price of bitcoin climbed more than $ 51,000 on Friday, reaching its highest level since mid-May.

Investors say bitcoin’s move coincided with hundreds of millions of dollars in option expiration on Friday. They also pointed to the conciliatory speech by Fed Chairman Jerome Powell in Jackson Hole, suggesting that bitcoin is experiencing a catch-up trade as most other assets reacted at the time, with the exception of bitcoin.

Bitcoin climbed to $ 51,026.24 at one point on Friday, reaching its highest level since May 14, according to Coin Metrics. It broke above $ 50,000 two weeks ago and has traded slightly below that line since, but analysts said it still has room to run.

Ether hit $ 4,025.75, its highest level since May 15. The price move came amid renewed interest in DeFi and NFTs, with the price of ether hitting $ 4,000, also its highest since mid-May. Typically, the price of bitcoin has driven other crypto assets whose transactions tend to move with those of bitcoin, but investors say that was not the case this week.

“Many institutions that have taken an interest in bitcoin have shifted to eth as the ‘next hot thing’ and the second largest market capitalization asset,” said Jesse Proudman, co-founder and CEO of roboadvisor Makara. “Plus, most institutional players understand that many of these NFTs are built on Ethereum, and it’s an indirect way to gain exposure to the fastest growing segment of the market.”

The move came amid renewed interest in DeFi and NFTs, with the price of ether hitting $ 4,000, also its highest since mid-May. Typically, the price of bitcoin has driven other crypto assets whose transactions tend to move with those of bitcoin, but investors say that was not the case this week.

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