Analysts cited several factors as Bitcoin surpassed $64,000 early Monday, a 10% increase over the past week.
They include last week's Fed rate decreases, Bitcoin ETF demand, and bipartisan political backing. Even if the causes differ, analysts think they'll drive a rally and pave the ground for greater prices in the months ahead.
Bitcoin (BTC) rose 1.2% in early European trading and 10% in a week to $63,520. According to CoinGecko, Ethereum (ETH) is up 2.4% at $2,650, up 15% in seven days.
The Federal Reserve's 50-basis-point interest rate decrease damaged the U.S. currency and made Bitcoin an attractive hedge against inflation and fiscal uncertainty, driving Bitcoin's surge.
With U.S. fiscal debt at $35 trillion and rising by $1 trillion every 100 days, Bitcoin is becoming a gold-like store of value.
"Any signal of looser monetary policy and a potentially weaker dollar is positive for Bitcoin," Bernstein analyst Gautam Chhugani said, noting that BTC had risen 45% year-to-date, surpassing gold's 27%.
Political events have also boosted sentiment. At a weekend New York event, U.S. Vice President Kamala Harris supported digital assets and made her first public reference of the crypto industry.
This follows former President Donald Trump's pro-crypto attitude of softer rules. The crypto industry is wary of Harris, but Bernstein analysts believe her acknowledgement and Trump's support indicate bipartisan support that might clarify regulations.