Bitcoin has hit a new all-time high at over US$68,000, sending the cryptocurrency market capitalisation to above $3 trillion, spurred by the momentum from global commercial banks' increasing interest in crypto investing.
Revelio, a financial market information services firm, revealed that the largest Wall Street banks such as Goldman Sachs and Well Fargo are hiring a large number of cryptocurrency experts to support their growing interest in the business.
Thanks to wider public acceptance, Bitcoin has generated around 350% returns year-to-date and is set to get a system upgrade that will make transactions of the coin more private, cheaper and more efficient in six days.
According to taproot.watch, a tracker developed by blockchain developer Hampus Sjoberg, Bitcoin's Taproot update is the first major upgrade to cryptocurrency's code since the SegWit update in 2017.
Meanwhile, the price of Ethereum also rebounded to above $4,800, driven by the same positive sentiment from wider institutional acceptance.
Data on CoinGecko.com shows that Bitcoin and Ethereum prices have both more than doubled since June, pushing the cryptocurrency market cap to above $3 trillion.
Kannithi Tongtanagoon, co-founder of Cryptomind Group, said due to relatively high demand for the coins and limited supply, the supply shock in Bitcoin is another factor driving the price surge.
"Every time there is an upgrade, the price jumps," said Mr Kannithi.
Many institutional investors and big funds, including famous speculator George Soros, and Tesla Inc, have been heavily investing in the assets during this period and still haven't sent any signs for sales, causing high speculation in assets in the medium term.
Meanwhile, Poramin Insom, director of Satang Pro Corporation, a cryptocurrency exchange, said there is still has no concrete news to support the 20% price jump since the listing of Bitcoin-based futures exchange-traded funds on the New York Stock Exchange.
He said the Taproot upgrade should have caused the price to jump by around 5%, but 20% is a surprise.
However, he said Bitcoin's price might reach $70,000 baht this month and possibly $100,000 baht within this year if positive news surrounding the coins continue to emerge.
"But investors should be very careful with cryptocurrencies because they are highly volatile. The price can fluctuate by up to 30-40% a day if any bad news comes out," said Mr Poramin.
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