Bitcoin recovers in a US$50,000 bounce

The price of bitcoin hit US$50,000 (HK$390,000) amid a remarkable recovery for the cryptocurrency yesterday.

The rally brings prices to the highest since early September when El Salvador rolled out the cryptocurrency as legal tender.

A Bank of America report shows that enthusiasm for crypto is gaining traction on Wall Street despite its many controversies. Just last month, China issued a blanket ban on transactions and US financial watchdogs are investigating some of the biggest crypto exchanges.

In the eyes of Bank of America, more regulation could be a positive for crypto in the long run. Once rules are established, the uncertainty over how to invest in crypto will be lifted, strategists say.

Bitcoin has been slowly making its way back to its previous highs after a meltdown in May.