Investing.com -- Bitcoin rose to its highest level so far this year, on hopes that increasing institutional demand will see a wave of new money enter the market as the popular crypto looks set to test $10,000.
Bitcoin rose 2.17% to $9,270.5, from a low of $8,865.6. Bitcoin's previous climb above $9,000 was met with stern resistance, pushing the popular crypto into correction territory. But so far, there's little to suggest a repeat is on the cards.
The latest surge has mostly been attributed to a duo of factors, including an expected cut in supply due next year, dubbed the halvening and signs that institutional investors are beginning to increase their exposure to cryptos.
Facebook's (NASDAQ:FB) upcoming launch of its crypto has symbolized the growing interest in cryptos from institutional players, underpinning the current rally in bitcoin, according to Christel Quek, chief commercial officer of blockchain firm BOLT.
"Bitcoin has climbed past $9,000, reacting to reports of Facebook’s plans to unveil a digital currency," Quek told The Independent.
The ongoing tick higher in bitcoin's market cap at $164 billion, often used to gauge demand, is up 15% from a week ago, indicating that, for the moment, there's little incentive to pull funds from the market.
Other cryptos mostly followed Bitcoin higher. XRP was flat at $0.42831, Ethereum added 1.00% to $273.29, but Litecoin slipped 1.22% to $133.95.