Bitcoin‘s $100,000 price target has reappeared as the cryptocurrency surpasses the $50,000 mark

The resurrection of virtual currency has roused the crypto faithful's animal spirits.

Bitcoin once again surpassed the carefully watched $50,000 barrier, continuing the cryptocurrency market's rebound from a catastrophic tumble just three months ago.

In Asian trading Monday, the largest virtual coin rose as high as 4.2 percent to about $50,440, while other tokens like as Ether and Cardano's ADA also gained. Bitcoin last crossed the $50,000 mark in mid-May.

The rebirth of virtual currencies has reawakened the wild spirits of the crypto devout, reviving predictions of Bitcoin reaching $100,000 or more. Others believe the volatile asset is currently carving out a larger trading range.

“We are seeing some really strong indications here,” said Vijay Ayyar, head of Asia-Pacific at Singapore-based cryptocurrency exchange Luno. Bitcoin may "retest all-time highs" after surmounting levels deemed significant by some.

Bitcoin reached a record high of over $65,000 in April, buoyed by a flood of cash, fast-money bets, and confidence about expanding institutional demand. Elon Musk's supportive comments and Coinbase Global Inc.'s direct listing further spurred excitement.

However, more negative views appeared subsequently, including a U-turn by Musk, focusing on the environmental impact of the energy needed by the computers that power Bitcoin. China's crackdown on cryptocurrency also darkened the atmosphere. Bitcoin fell below $30,000 in May, following a crypto rout.

2.2 Trillion Dollars

Since then, the value of more than 9,000 digital tokens tracked by CoinGecko has increased to almost $2.2 trillion, up from $1.2 trillion a month earlier.

Bulls have been buoyed by recent statements from Musk and Cathie Wood of Ark Investment Management LLC, as well as speculation about Amazon.com Inc.'s potential engagement in the cryptocurrency business.

Musk stated last month that he wishes the token would thrive and that he has personally purchased Bitcoin, Ethereum, and Dogecoin. According to Ark's Wood, businesses should consider adding Bitcoin to their balance sheets.

The hash rate – a metric that indicates how much processing power is being sent into the Bitcoin network – has also recovered from early-July lows, indicating that the industry is readjusting following China's clampdown.

Bitcoin is "approaching the upper end of what I anticipate as a new trading range in the low $40,000 to low $50,000," Rick Bensignor, CEO of Bensignor Investment Strategies, wrote Monday in a note.

Apart from Bitcoin, second-ranked Ether has been gaining ground, aided by an upgrade to its underlying network, which suggests a more finite supply of the currency. The ADA token, which is tied to the Cardano blockchain, has recently risen into third place, owing to technological advancements that may improve the network's utility.

Bitcoin is up 73% this year, Ether is up 350%, and ADA is up over 2,000%. Dogecoin and Solana have also aided the crypto surge.

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