- The
bitcoin price rose past $60,000 again on Thursday after falling sharply at the start of the week. - The Fed stressed it would keep monetary policy loose, while
stimulus checks are being sent out. - Morgan Stanley plans to give its rich clients access to bitcoin as institutional interest grows.
Bitcoin rose past $60,000 barrier again on Thursday before paring slightly after a sharp fall from record highs earlier in the week, with stimulus and institutional interest boosting the world's biggest cryptocurrency.
The bitcoin price (BTC) was up 8.3% to $59,709 at 12.50 p.m. EDT, having earlier touched $60,080.
That was off a high of close to $62,000 reached on Saturday, but well up from a low of below $54,000 hit on Tuesday. Bitcoin has risen around 1,000% in a year.
Ethereum's cryptocurrency ether (ETH) rose 2.7% to $1,820, although that was below a high of more than $2,000 reached in February.
Edward Moya, senior market analyst at Oanda, said Wednesday's
The Fed said it planned to keep supporting the economy until employment and inflation picked up and foresaw no interest-rate rises until 2024.
Huge amounts of stimulus have been a key driver of the bitcoin boom, and "an accommodative Fed until the job is done should keep the world's largest cryptocurrency strongly supported," Moya said.
Justin d'Anethan, head of exchange sales at Diginex, said stimulus checks being sent out to Americans was another factor.
More interest from big institutions also appeared to lift the coin, with Morgan Stanley planning to offer its rich clients access to bitcoin funds, according to CNBC.
D'Anethan said: "It seems that people are buying globally, nudged by Meitu, a Hong Kong listed company, buying yet another $50 million worth of crypto and, overnight, the news that Morgan Stanley will enable its wealthier clients to access BTC funds."
Adrian Patten, chair of currency infrastructure-provider Cobalt, said: "With such high prices, both liquidity and volumes are increasing and catching up with the more traditional asset classes."
Other market participants are more skeptical, however, with Bank of America saying on Wednesday that bitcoin does not provide diversification or inflation protection.