Bitcoin hits two-week high as it soars above $54,000

Bitcoin was up 8.2% to $54,001.77 at 8.50am in London on Tuesday. Photo: Thiago Prudêncio/SOPA/LightRocket via Getty

Bitcoin’s (BTC-USD) price was rising strongly on Tuesday morning, touching a two week high above $54,000 (£38,906).

Bitcoin was up 8.2% to $54,001.77 at 8.50am in London on Tuesday. Earlier in the session, the cryptocurrency had touched a two week high against the dollar.

Tuesday morning’s rise means the market value of the world’s biggest cryptocurrency has once again crossed $1tn.

The rally comes as bitcoin continues to recover from a recent pullback. Bitcoin reached a new all-time high above $58,000 in late February before dropping to below $44,000. The world’s biggest cryptocurrency has seen its price rebound since the start of the month.

Bitcoin hit a two-week high against the dollar. Photo: Yahoo Finance UK

“Bitcoin is very much out of trouble zone now as the price has broken most of its obstacles,” said Naeem Aslam, chief market analyst at Avatrade.

“The next target for the Bitcoin price is really the all-time high, and from there onwards the journey will begin towards a new target of 70K.”

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Bitcoin has rallied over 350% since last October, spurred higher by a wave of institutional investor adoption. Payment app Square (SQ) has invested over $200m in bitcoin over the last 6 months, while Tesla (TSLA) said last month it had $1.5bn invested in the cryptocurrency. Mainstream financial services companies are also getting involved — UK asset manager Ruffer (RICA.L) has put 3% of its assets into bitcoin and Goldman Sachs (GS) is restarting its trading desk for the cryptocurrency.

Citi (C) said recently that bitcoin could be at a “tipping point,” although the bank’s research note has since faced criticism over its sourcing and accuracy of data.