A representation of virtual currency Bitcoin is seen in front of a stock graph. Picture: REUTERS/DADO RUVIC
A representation of virtual currency Bitcoin is seen in front of a stock graph. Picture: REUTERS/DADO RUVIC

Bitcoin rose to about $51,000 and touched the highest level in more than two weeks, buoyed by wider positive sentiment in financial markets.

The largest cryptocurrency has advanced some 4% over the past two days and at one point reached $51,524 on Friday in Asian trading. Ether, the second-largest token, was near $4,100. 

Risk ardour has improved in global markets, evidenced by a record-high close for the S&P 500 on Thursday. It remains to be seen whether a receding tide of central bank liquidity will bring bigger challenges for cryptocurrency demand.

“I view bitcoin as a high-Beta risk asset,” said Ross Mayfield, an investment strategy analyst at Baird. “When risk appetite is up, it’s up big. And when risk appetite is down, it can be down big. It’s not perfectly correlated, that’s definitely too simple of a read, but it’s certainly not a volatility hedge.” 

Bitcoin rose to about $51,000 and touched the highest level in more than two weeks, buoyed by wider positive sentiment in financial markets. Graphic: BLOOMBERG
Bitcoin rose to about $51,000 and touched the highest level in more than two weeks, buoyed by wider positive sentiment in financial markets. Graphic: BLOOMBERG

A technical study shows that bitcoin has breached the upper bound of a so-called pennant technical pattern, and scaled its 20-day moving average. 

While that suggests more gains may lie ahead, other technical signals point to the $53,000 to $55,000 zone as a potential test of the strength any such rally.

Cryptocurrency-related stocks in Asia such as Woori Technology Investment, Remixpoint and Ceres got a tailwind from Bitcoin’s recent performance.

The digital coin is up some 76% so far in 2021, on course for a third year of gains.

More stories like this are available on bloomberg.com

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