Bitcoin price shoots past $50k amid ‘buying frenzy’

Bitcoin crashed in price below $30,000 after hitting an all-time high in April of $64,000, but returned back above $50,000 on 23 August, 2021 (AFP via Getty Images)

The price of bitcoin has shot above $50,000, taking it to its highest level since May.

The cryptocurrency reached $50,419 on Monday morning, according to CoinMarketCap’s price index, amid a market-wide resurgence.

Ethereum (ether), Cardano (ada) and Binance Coin were among other leading cryptocurrencies to experience significant gains in recent days.

Cardano is currently trading at record-breaking levels following a price increase of more than 13,000 per cent since the start of the year.

The gains have seen the overall market cap of all crypto assets combined return above $2 trillion, and led to claims that bitcoin could be preparing for “an explosive bullish break” by some analysts.

It remains around $14,000 away from the all-time high that it hit in mid April, though has made considerable progress towards it in recent weeks.

Just ahead of the latest price milestone being passed, the boss of one leading exchange said he expected a buying “frenzy” if the momentum could be sustained.

“The recent price rally is not indicative of a massive jump yet, however should more buyers dive in to push the price above the $50,000 level, a frenzy may be ushered in to steer the price toward a medium-term target of $55,000,” said Konstantin Anissimov, executive director of crypto exchange CEX.IO.

Simon Peters, a crypto market analyst at the online trading platform eToro, added: “The price of BTC has been on a rapid rebound since late July in what has been a rollercoaster ride for the cryptoasset in 2021.

“Major institutional players are now making clear steps into crypto. JPMorgan and Wells Fargo join Goldman Sachs and BNY Mellon in expanding their crypto remits for clients.

“The moves reflect a developing demand for crypto from a different kind of demographic to that of more tech-savvy online exchanges.”