Bitcoin price has reached its highest mark since May after hitting $51,000 on Friday. This came after the largest cryptocurrency by price and market cap have been declining in price in the last few months.
According to investors the rise in Bitcoin price coincided with hundreds of millions of dollars in options expiries on Friday. Additionally, investors said that Fed Chair Jerome Powell’s dovish Jackson Hole, Wyoming speech. They suggested that Bitcoin is profiting from a catch-up trade.
The price of Bitcoin surged to its highest quarterly price after hitting the $51,026.24 mark since May 14 according to data by Coin Metrics. The digital token rose above $50,000 two weeks ago.
Meanwhile, Ether surged to $4,025.75, its highest price since May 15. The surge coincided with the high interest in decentralized finance as well as NFTs (Nonfungible tokens) and Defi. The surge in Bitcoin price has also high contributed to the price increase of other digital assets in the last few months. However, according to analysts, the reason for the surge this time is different.
“Many institutions that have had an interest in bitcoin have moved on to eth as the ‘next hot thing,’ and the second largest market cap asset,” said Jesse Proudman, co-founder, and CEO of Robo-advisor Makara. “Additionally, most institutional players understand that many of these NFTs are being built on Ethereum, and it is an indirect way to get exposure to the fastest-growing segment of the market.”