Bitcoin Soars Above $57,000 in a Two Week Rally

The number one cryptocurrency Bitcoin saw its price soar above $57,000 on Monday as it extended its two-week rally.

The price of the digital coin soared as high as $57,740.82 according to Coin Metrics. This was the highest level for the cryptocurrency since early May.

Bitcoin needs another 12% in gains to reach its all-time high of $65,000.

The coin may be seeing these gains on the optimism that a bitcoin futures ETF will be approved soon as well as comments from the heads of the Federal Reserve and Securities and Exchange Commission saying that they do not plan to ban bitcoin.

According to Ned Davis Research, this seems to have “embolden” investors.

Ben McMillan, chief investment officer at the quantitative index fund manager IDX, believes the price increase may be due to increasing concerns about inflation being more than transitory as well as trading data that looks increasingly positive for the bitcoin price.

“We’re looking at food prices that are at a 10-year peak, oil topping $80 for the first time in five or six years, and that’s really hitting consumers in the pocketbook,” said McMillan. “A lot of investors are starting to look back to the original appeal of bitcoin as a store of value, as something that can’t be weighed by any central bank.”

NDR’s Pat Tschosik noted bitcoin and gold’s one-year correlation has been dropping to the point where it’s about to turn negative.

“Bitcoin could be seen as the preferred inflation hedge if the dollar and real rates are rising,” he told CNBC.

Bitcoin is up 95% for the year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.