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The latest Bitcoin rally has pushed the global market up by about 5%.
According to data from metrics site CoinGecko, Bitcoin’s price has soared past $40,000, reaching highs of just under $42,000.
On Friday evening, the largest and oldest cryptocurrency, which has a market cap of $781 billion at its current price of $41,629, surpassed $40,000 for the first time. Bitcoin had not risen above $40,000 since mid-June.
Bitcoin rose from $39,109 at 8 p.m. UTC to $41,780 at 11 p.m. UTC in a single burst on Friday. The rise, which was accompanied by the rest of the market, increased the total market capitalisation of cryptocurrencies by 5.2 percent, to $1.67 trillion.
A strong week for the US economy coincides with the boom. Profits were reported by several major technology companies, including Facebook, Amazon, Apple, and Google.
The increase also occurred shortly after $1.5 billion in Bitcoin options contracts on the unregulated derivatives exchange Deribit expired. This allowed traders to buy up Bitcoin at a discounted rate to get a headstart on the latest rally. It also coincided with the surfacing of reports that GoldenTree, a U.S. hedge fund with $45 billion in assets under management, had invested in Bitcoin.
The rise to just under $40,000 happened last week after a report from City A.M. that Amazon would “definitely” accept cryptocurrencies this year and would launch its own coin. Amazon has since denied the rumours, which City A.M. attributes to an Amazon insider, but the market has continued to rise.
Ethereum, like Bitcoin, had a successful weekend. The second-largest cryptocurrency by market capitalisation increased by 4.8 percent to $2,458. This is the highest price for Ethereum since the middle of June.
The most recent rise comes a couple of days before the London Hard Fork. The London Hard Fork, which will go live on August 4, will burn fees rather than pay them to miners, incentivizing developers to accelerate the transition to Ethereum 2.0.
Bitcoin Cash ABC, a fork of Bitcoin Cash (a fork of Bitcoin), has increased by 31% in the last 24 hours to $51.62.