The virtual asset was up 5% on Friday.
Yuichiro Chino.
On Friday, the price of the virtual currency rose above $50,000 for the first time, matching the upbeat tone of the broader financial markets.
The last week of December is shaping up for a so-called "Santa Claus rally" for cryptocurrencies and other risky assets.
After being stuck below the psychological level for two weeks, the leadingcryptocurrencies broke through $50,000 late Thursday. At last check Friday, it was trading 5% higher at $51,191.
The Federal Reserve's decision to wind down support for the US economy and the rapid spread of the Omicron coronaviruses have caused investors to worry.
The prices of cryptocurrencies were weighed down by these fears.
After the Fed's December meeting, analysts said that the Fed will double the pace of bond purchases in a bid to combat high inflation.
The investors seem to be letting go of those concerns and are now turning to riskier assets. The S&P 500 closed at a record high on Thursday as US equity markets are closed for the holiday.
Cryptocurrencies rose across the board Friday. Cardano's ada added 8% to reach $1.45 while ether was up 4% at $4,106.
Terra's luna hit a record high of $100.84 on Friday after logging gains of over 30% earlier in the week.
Markets Insider.
Demand from consumers and retailers shot up in the year 2021. A Grayscale study found that more than half of the US population got in only this year.
The leading scurvy is up 75% for the year so far, but it is still 25% below its record high.
The trends suggest that the rise of the virtual currency will continue next year. In a post this week, the exchange said that advocates believe that the token is a rival to other digital currencies.
Philip Gradwell, chief economist at Chainalysis, said in a note that there will be a new wave of buyers. The question is whether the institutions that entered in Q4 of 2020 and Q1 of 2021 will sell to this next wave.
"If they are correct, the price pressure will be mitigated as new demand is balanced by their sales," he said.
If everyone continues to hold, then the price pressure could increase significantly, given the low supply of the virtual currency.
By the year 2050, Gen Z and millennials are expected to inherit over $60 trillion in wealth. 3 stocks are expected to surge over 70%.
Business Insider has an original article.
