06.10.202112:49 Forex Analysis & Reviews: Bank of America recognizes cryptocurrencies as a new asset class

Bitcoin rose above $ 50,000 after strategists at Bank of America said they recognize cryptocurrencies as a new asset class.

"The universe of digital assets is too large enough to ignore," said Alkesh Shah and Jessica Reif Ehrlich. "Our view is that there could be more opportunity than skeptics expect."

The Bank of America also reported that cryptocurrencies are gaining traction on Wall Street despite many controversies. Just last month, China imposed a complete ban on transactions, and US financial supervisors are investigating some of the largest crypto exchanges.

The bank said increased regulation in the industry could be a positive factor in the long term because once rules are in place, the uncertainty about how to invest in it will be lifted.

As such, Bitcoin is slowly returning to its previous highs, after the crash in May, which was caused by the restriction of crypto mining in China. Now, prices are up more than 60%, from their lows in July.

Arcane Research said that thanks to its most recent rally, Bitcoin has broken through two key resistance levels and is now trading at a higher level. It fluctuated around $ 45,000 for a while before bursting out. Most likely, it will trade around $ 46,000 - $ 48,000 for some time.

Meanwhile, Katie Stockton, founder and managing partner of Fairlead Strategies, said BTC may test $ 65,000 soon. "We expect short-term overbought conditions to be weathered long enough for a test of minor resistance near $ 52,900," she said.

Grayscale Investments CEO Michael Sonnenshein also noted that Bitcoin fluctuated a lot recently, and when there is a drop in prices, investors often see it as an opportunity to buy.

Dawn Fitzpatrick, CEOof Soros Fund, said cryptography has "gone mainstream."