Bitcoin exceeds US $ 50,000 as Bank of America says crypto is ‘too big to ignore’, Banking News & Top Stories

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LONDON (BLOOMBERG) – Bitcoin topped US $ 50,000 as Bank of America (BOA) strategists backed cryptocurrency as a new asset class.

The rally takes prices to their highest levels since early September, when El Salvador rolled out cryptocurrency as legal tender. Bitcoin rose 2.8% at the start of trading in New York on Wednesday, October 6, to reach US $ 50,354.

The universe of digital assets is “too big to ignore,” write BOA strategists. “Our view is that there could be more opportunities than skeptics realize.”

The BOA report shows that enthusiasm for crypto is gaining ground on Wall Street despite its many controversies. China banned transactions last month, and U.S. financial authorities are investigating some of the biggest crypto exchanges.

In the eyes of the BOA, more regulation could be positive for crypto in the long run. Once the rules are established, the uncertainty of how to invest in crypto will be lifted, the strategists wrote.

Bitcoin has slowly returned to its previous highs after a collapse in May sparked by China’s crackdown on crypto mining. Prices have risen more than 60% since a low in July.

With its latest rally, Bitcoin broke through two key resistance levels and is now trading at the upper end of its two-month consolidation range, according to a report from Arcane Research.

The coin hovered around US $ 45,000 for a while before finally exploding. This means that the range of US $ 46,000 to US $ 48,000 is a solid support level and the coin could trade in this area for some time, according to the report.

“The price of Bitcoin has changed a lot even recently and so when we see price drops we often see it as an opportunity and investors are moving to buy those drops,” said Michael Sonnenshein, Managing Director of Grayscale Investments, in an interview for the Bloomberg Invest Global conference.

“If they haven’t fundamentally changed their perception or belief in an investment, but can buy an asset at 10%, 15%, sometimes 20% cheaper than a day or two ago, eh well, this is an irresistible opportunity. “

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