Bitcoin rallies 5%, building steam after tough few months for cryptocurrency

Artur Widak | NurPhoto | Getty Images

A man passes in front of a Bitcoin exchange shop in Krakow, Poland.

Bitcoin continued its rally Monday, shrugging off regulatory and security worries that have dragged down cryptocurrency prices this year.

The world’s largest and most popular digital currency rose 5 percent to a high of $7,770.58, according to data from CoinDesk, and is up roughly 20 percent in the past week. It broke above the $7,000 level for the first time in a month last Tuesday following news that asset-management giant BlackRock will set up a working group to explore cryptocurrencies and blockchain technology.

Grayscale, which manages $2 billion in assets, said in a report last week that it’s seeing more institutions interested in cryptocurrency products, which eToro’s Matthew Newton said adds to the long-term upside for bitcoin. He also pointed to anticipation surrounding approval of a bitcoin ETF, which the Securities and Exchange Comission is reportedly due to decide in August.

“In the long-run all of these points are very bullish,” said Newton, an analyst at eToro. “Technically, on the charts, what happened last week was very positive, but getting through these levels will be critical in the short term action.”