“The institutional world is turning cautious on stocks and that is making cryptocurrencies look very attractive,” said one analyst.
The world’s largest cryptocurrency is up 6% over the last 24 hours and has broken the $48,000 mark for the first time since May. At press time, bitcoin (BTC, +4.72%) was trading at $48,748 according to CoinDesk 20 data.
The recent price rally is not indicative of a massive jump just yet, according to Konstantin Anissimov, Executive Director at crypto exchance, CEX.IO. However, he said that if more buyers dive in to push the price above the $50,000 level, a frenzy could be ushered in to steer the price toward a target of $55,000.
“The next major resistance, for now, is at the $50,000 zone,” said Anissimov.
The cryptocurrency is now posting a 66% year-to-date return, CoinDesk data shows.
“The institutional world is turning cautious on stocks and that is making cryptocurrencies look very attractive,” said Edward Moya, senior market analyst at Oanda. Wall Street doesn’t seem to be worrying about a taper tantrum next week, which is helping the cryptocurrency break out, according to Moya.
“If bullish momentum remains in place and next week, Fed Chair Powell pours cold water over tapering asset purchases, bitcoin could rally towards $52,500 by the end of next week,” he added.
The second largest cryptocurrency by market cap, Ethereum, is also posting gains. Up 7% in the last 24 hours, ether (ETH, +3.55%) was trading at $3,274 at press time.