Bitcoin (BTC) bounced back to $55,000 on Wednesday for the first time since May.
The currency soon retracted to $54,000 and is trading at $54,173.90 at the time of reporting.
While BTC’s price is known for its frequent fluctuations, the reason behind this is more important.
BTC was going strong in mid-May when Tesla, the electric vehicle automaker, announced that it would no longer accept the currency as a viable option. Soon after, China suspended all BTC mining only to be followed by a complete ban on cryptocurrency earlier this month.
Understandably, BTC’s price plummeted, and even dipped below $30,000 back in June.
The currency’s buoyancy today may be chalked up to comments by Federal Reserve chair Jerome Powell who said that the US central banking system had no intention of following China’s lead with a ban on BTC.
Some have speculated that other regulators are about to make big announcements in support of various financial mechanisms that involve BTC trading, adding more strength to the currency.
Bank of America and U.S. Bank confirmed their support for the currency, boosting its value and signaling a broader coalition of trust for BTC.
Edward Snowden, the famous whistleblower who revealed a number of state secrets, has also been vocal about BTC this week. Snowden even argued that thanks to China’s ban, BTC has become stronger.
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