August 23, 2021 - 04:37 PM 437 views
Bitcoin traded above $50,000 for the first time since 15th May on Monday as the recent rally in cryptocurrencies showed no signs of slowing down.
Having traded below $30,000 as recently as 21st July, Bitcoin has now jumped around 70% in a little over a month to trade above $50,000.
There was no obvious immediate catalyst for the jump higher, but some have pointed to the news that PayPal will allow UK customers to buy and sell some cryptocurrencies on the platform as a reason for the jump. This is the first time that service will be available to PayPal customers outside of the US.
“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,” said PayPal Vice President and General Manager, Blockchain, Crypto and Digital Currencies Jose Fernandez da Ponte.
There has also been a rebound in the hash rate – the computing power of the Bitcoin network – which dropped by more than 50% between May and July as China clamped down on Bitcoin mining. The hash rate of the Bitcoin network has now increased over 45% from its July low, signalling that computing power is coming back online as miners move their operations from China.
The cryptocurrency Cardano continues to outperform its peers and is now firmly positioned as the third largest cryptocurrency by market cap, behind Bitcoin and Ethereum.
The recent surge in the price of Cardano comes ahead of the Alonzo Purple network upgrade, which is scheduled to take place on 12th September.
The upgrade will allow smart contracts and decentralised finance applications on the Cardano network.
Cardano has risen around 165% since the low on 20th July on hopes that the network will rival Ethereum and match the network’s capabilities.
The recent rally has taken the total market cap of all cryptocurrencies back above $2 trillion to its current size of $2.16 trillion, up from around $1.2 trillion in late July.
However, there is still a way to go before the total cryptocurrency market cap hits its all-time high above $2.5 trillion, which was reached at the beginning of May.