Investing.com – Bitcoin surged Tuesday, rising above $7,000 for the first time in more than a month amid renewed demand for cryptos.
Bitcoin rose 10.51% to $7,366.7 on the Bitfinex exchange, from a low of $6,652.1.
The rally in bitcoin emerged as it traded around $6,800, a price level some had identified as resistance – price levels that trigger selling pressure. But strong buying pressure around the $6,800 price level, saw bitcoin move above resistance, triggering a further move higher.
While there didn't appear to be a specific reason for the rally, some crypto observers cited the recent uptick in institutional demand as the catalyst for the move.
BlackRock said Monday it was preparing to set up a working group to look into cryptocurrencies and blockchain.
We are a big student of blockchain,” BlackRock CEO Larry Fink said. He added, however, he does not see "huge demand for cryptocurrencies."
While Goldman Sachs announcement Tuesday that it had appointed David Solomon as its CEO to succeed Lloyd Blankfein also garnered attention.
Solomon is expected to ramp up the bank's interest in cryptos after he said last month that Goldman was looking to add further bitcoin and cryptocurrency services.
Yet, others questioned whether Solomon's appointment had any bearing on the rally in bitcoin as his appointment was widely expected after the New York Times broke the story well before the official announcement.
The rapid rise in bitcoin triggered renewed appetite for cryptos as more than $20 billion returned to the market in less than 24 hours.
The total market cap of cryptocurrencies rose to about $293 billion, at the time of writing, from about $269 billion Monday.
Ripple XRP rose 10.07% to $0.51922 on the Poloniex exchange, while Ethereum rose 4.71% to $503.21.
Bitcoin Cash rose 854.70% to $854.70, while Litecoin rose 8.17% to $89.63.