Bitcoin broke the $8,200 level for the first time in two months Tuesday following weeks of bearish sentiment and a lack of new buyers.
The world’s largest cryptocurrency surged as high as $8,342.62, and rose more than 7 percent in the last 24 hours, according to industry website CoinDesk, which tracks a number of exchanges. The last time bitcoin traded above that key level was May 23.
The digital currency is up roughly 15 percent in the past week, mostly buoyed by reports of institutional investor interest.
"The trajectory of the bitcoin narrative has inflected," said Tom Lee, managing partner at Fundstrat Global Advisors. "We see potential for inflows of fiat into crypto which supports higher prices."
Last week, BlackRock confirmed it assembled a working group to look into cryptocurrencies and its underlying technology, blockchain. The working group has existed since 2015, a source familiar with the matter told CNBC, but the news still managed to help sentiment for the digital currency.
Billionaire hedge fund manager Steven Cohen’s venture arm, Cohen Private Ventures, invested in the cryptocurrency-focused fund Autonomous Partners, according to a Fortune report published last week.
Speculation that a bitcoin ETF will be approved by the SEC in August has also boosted sentiment in the past month.