(Bloomberg) — An ongoing recovery in Bitcoin has set the largest cryptocurrency on track for its longest winning streak this year.
The virtual coin rose a whopping 5.8% to $40,000 and traded at $39,900 as of 10:30 AM in Singapore. It has been advanced for eight consecutive days. Other coins, including the second-ranked Ether, rose, boosting the Bloomberg Galaxy Crypto Index.
“Current momentum is strong” and $45,000 is in sight, but a final break above $50,000 “will take some time,” Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, wrote in a note Tuesday.
Bitcoin remains well below its mid-April high of nearly $65,000. But bulls have taken heart from recent positive comments from billionaire Elon Musk and Cathie Wood of Ark Investment Management LLC, as well as speculation about Amazon.com Inc.’s possible involvement. in the cryptocurrency sector. The token shot up Monday as some traders abandoned leveraged bets on declines.
For now, these stories have taken the focus away from criticizing Bitcoin for the environmental cost of the energy consumed by the servers that underpin it. Regulators in China, the US and Europe are also increasingly cracking down on cryptocurrencies or considering stricter regulations.
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