2018.04.2418:46:00UTC+00Bitcoin Hits Six-Week High as Positive Headlines Buoys Sentiment

Bitcoin rallied to a high not seen in six weeks on positive reports that included the possible entry of major financial institutions in the digital asset market, lifting overall sentiment.

The cryptocurrency advanced after a steep 50 percent decline in the first quarter of the year, after an almost 1,400 percent rally in 2017.

Bitcoin advanced in six of the last seven sessions as of Tuesday. It was last trading up 4.4 percent at $9,340.8 on the Bitstamp platform.

The gains of the digital currency also stoked demand for other cryptocurrencies such as ripple and ethereum, driving the market capitalization of all digital currencies to $427 billion, according to data from cryptocurrency tracker coinmarketcap.com, the biggest market cap since early March.

According to analysts, the space has continued to be relatively stable over the past few weeks and cryptocurrency markets are showing resilience as the mainstream population gain a more nuanced understanding of the long-term potential of blockchain technology. Blockchain, a digital ledger of transactions, generally underpins cryptocurrencies and can be utilized to track, record, and transfer assets across all industries.

Reports that major financial institutions are becoming more bullish regarding the space has also boosted the confidence of retail investors, analysts added.

Several media outlets reported that Goldman Sachs, has hired Justin Schmidt, a former trader, to be the first head of cryptocurrency markets in the firm's securities division. Reporters also said Barclays PLC had been assessing interest from its clients about launching a cryptocurrency trading desk.