Bitcoin’s Price Crosses $8K for First Time in Two Months

Bitcoin’s Price Crosses $8K for First Time in Two Months
24 Jul

Bitcoin is coming back into favor with investors, with the price crossing $8,000 for the first time since May.

According to CoinDesk’s Bitcoin Price Index, the virtual currency was trading at $8,015 on Tuesday morning, which the website noted is a level not reached since May 24. On June 24, bitcoin hit a new low for the year trading at $5,785 and has since been climbing back up. It is now 40% higher since the June low.

While it’s not clear what is driving the price, investors are growing more interested in the digital token in recent weeks based on trading volume. Citing CoinMarketCap data, CoinDesk noted that bitcoin now accounts for 47% of the market capitalization of the cryptocurrency market, up from 37% in the middle of May. That is a level that bitcoin hasn’t seen since December when the cryptocurrency was surging.

After briefly surpassing $20,000 last year in December, the virtual currency has been on the decline in 2018 as fears of increased regulation, heists and a clampdown on initial coin offerings have spooked investors. The value of bitcoin is 60% lower than its peak in December.

Helping the price of bitcoin could be moves on the part of BlackRock and MasterCard Inc. (MA) to get into blockchain and cryptocurrency. BlackRock, the world’s largest asset manager, has set up a group to look into the space, while MasterCard reportedly received a patent to enable faster processing of cryptocurrency transactions.

Earlier this month, mining giant Bitmain reportedly closed a Series B funding round that values the firm at $12 billion.

Tom Lee, a cryptocurrency analyst at Fundstrat, told CNBC last week that the rise in the price of bitcoin also has to do with technical indicators which have started to become more favorable. He also pointed to BlackRock and Mastercard. “I think something like the Mastercard news is a positive development because it really validates the idea that digital money or blockchain money is a valid form of transaction even if it is not recognized in the US, “ Lee said during the CNBC interview.

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