Bitcoin rebounds back above $55,000 from 2-month lows, after Tesla says it believes in the long-term value of the cryptocurrency

Bitcoin rebounds back above $55,000 from 2-month lows, after Tesla says it believes in the long-term value of the cryptocurrency

Bitcoin's rebound from near two-month lows continued on Tuesday, boosted by Elon Musk's Tesla saying it believes in the long-term value of the world's most traded cryptocurrency, as well as renewed interest from big players.

The digital asset was up 3.1% to $54,911 at 7.10 a.m. ET. It had earlier touched $55,020, around 17% higher than the almost 2-month low of close to $47,000 hit on Sunday.

Bitcoin remained well below its all-time high of close to $65,000, reached on April 14, however.

The cryptocurrency's rebound was boosted by Tesla's first-quarter earnings, released Monday. They showed the electric car company made a $101 million profit by selling 10% of its bitcoin holdings, which initially cost $1.5 billion in January.

"We do believe long term in the value of bitcoin," Zachary Kirkhorn, Tesla's chief financial officer, said in an earnings call. In March, Kirkhorn was given the title master of coin.

"So it is our intent to hold what we have long term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles."

The bounce in the dominant cryptocurrency has also been aided by renewed interest from major institutions, with JPMorgan planning a bitcoin fund for wealthy clients, according to Coindesk.

Tesla has been