Bitcoin hit $48,234 on Monday evening, its highest since Dec. 31. The cryptocurrency was also able to hold ground after reaching its peak just below its highest. Bitcoin was last trading up 0.9% at $47,553.
Bitcoin has risen over 12% in the last week alone and market players attributed the growth to a new wave of adoption of crypto by institutional investors and financial firms.
Bitcoin’s growth has also had a direct impact on other cryptocurrencies with Ether hitting $3,436 on Monday, its highest since early January.
The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors, such as those stemming from Russia’s war in Ukraine. This has resulted in increased volatility in both the crypto and stock markets.
Bitcoin has lost 40% of its value since its Nov. 10 all-time high above $68,000 thanks to factors such as surging inflation and the likely move from the government to further regulate the sector.
Bitcoin’s volatility however highlights a durable truth for Bitcoin and that is the fact that it is still a highly volatile and speculative investment.
For more information, read the original story in Reuters.