Bitcoin Recovers After Cathie Woods' Supportive Comment

Bitcoin surged on Wednesday after Ark Investment Management LLC founder Cathie Wood gave supportive comments about the crypto-asset.

Bitcoin rallied as much as 7.2 percent to about $51,393 and is currently trading around the $50,000 level this morning. 

READ MORE: Bitcoin's Dip Makes Tesla Shares Fall 6% Lower

The week started really rough for the world’s largest cryptocurrency, after a drop to $45,000 yesterday that stirred up concerns and doubts about the token’s ability to sustain its exceptional fivefold surge over the past year.

On Tuesday, the U.S. Federal Reserve Chairman Jerome Powell stated that the central bank was not going back on its loose monetary policy, a statement that further stimulated overall investor sentiment as interest in cryptocurrencies have largely been fueled by a tide of monetary and fiscal stimulus to fight the impact of the pandemic.

Investors' confidence grew stronger after Cathie Wood stated in a Bloomberg interview that she was “very positive on Bitcoin, very happy to see a healthy correction here.”
The token’s current price is, however, still short of its recent record of about $58,350 (N27, 716, 250), and is still a little short of its record market cap of about $1.05 trillion. 

Bitcoin’s rally has become one of the hottest debates in financial markets: critics are stressing that bitcoin is a speculative bubble that will eventually burst, while believers see it as an emerging asset that is gaining more attention from investors, and not just speculators.