Bitcoin surged to over $55,000, albeit briefly, this week. Later it fell by 2.1 percent to settle around $53,500 as of 12.01 pm in Hong Kong.
This came amid speculation that the cryptocurrency would test the $58,350 high record it set in February 2021, with Chris Weston, head of research at Pepperstone Group noting that any move upward “wouldn’t shock,” Bloomberg reported.
This also comes since the cryptocurrency's dip since February-end, setting it “on track” for a second straight weekly advance, it added.
The interest comes primarily from institutional investors as they hope that stimulus checks from the Biden administration will pump financial markets and lift cryptocurrencies, the report said.
Notably, Bitcoin has risen 600 percent in 2020, leading to debate on it being “a precarious bubble or on a bigger bull run ahead.”
Amber Group’s Annabelle Huang told the publication that Bitcoin’s upward trend this week comes due to the US stimulus bill and because of MicroStrategy and Meitu purchasing Bitcoin.
“We have seen an increase in interest from institutional players globally. In China, a lot of high net worth individuals have been inquiring on how to add Bitcoin to their portfolio,” she added.