Bitcoin continues its rally today. The world’s most famous digital currency rose 5% to a high of $7,770.58 and is up roughly 20% in the past week. It broke above the $7,000 level for the first time in a month last Tuesday following news that asset-management giant BlackRock will set up a working group to explore cryptocurrencies and blockchain technology.
Grayscale, which manages $2 billion in assets, said in a report last week that it’s seeing more institutions interested in cryptocurrency products, which eToro’s Matthew Newton said adds to the long-term upside for bitcoin. “In the long-run all of these points are very bullish,” said Newton, an analyst at eToro. “Technically, on the charts, what happened last week was very positive, but getting through these levels will be critical in the short-term action.”
Bitcoin is still down more than 60% from its all-time high near $20,000 in December 2017. Most cryptocurrencies have come under global scrutiny this year amid thefts, frauds around initial coin offerings, market manipulation and its potential for money laundering.
The entire market capitalization for cryptocurrencies has dropped by more than 50% this year. Although, things seem to be changing.
