The price of Bitcoin is soaring this week.

The price of Bitcoin has soared this week, hitting a new high on Tuesday morning.

At 8.45am, the value of one bitcoin was $34,019 (around R641,861). On Monday the price was $30,781 (around R586,321). This means that the value of bitcoin increased by $3,238 (around R61,086) in one day.

The dramatic increase in the Bitcoin price may also be linked to comments by Federal Reserve chair Jerome Powell on Friday last week.

According to FXSTREET, Powell mentioned that the long-term US treasury yields were rising and that the US government may pause interest rate hikes, come November. This pause on interest rates would be dependent on inflation data. If inflation in the US rises sharply, it could cause a delay in the pause.

On Monday, the price of Bitcoin reached as high as $35,000 (around R660,294).

According to Cointelegraph, this is the first time the cryptocurrency has hit such highs since May 2022.

The surge is due to a new wave of excitement and interest in the upcoming spot exchange-traded fund (ETF) approvals.

Cointelegraph also noted that there will be an increase in the overall trading volumes across spot markets.

Furthermore, comments by Federal Reserve chair Jerome Powell on Friday last week may have also impacted the dramatic increase in the Bitcoin price.

According to FXSTREET, Powell noted that the long-term US treasury yields were rising and that the US government may pause interest rate hikes, come November. This pause on interest rates would be dependent on inflation data. If inflation in the US rises sharply, it could cause a delay in the pause.

The price of Ethereum has also risen. On Monday the price of the cryptocurrency was $1,689 (R32,113) and on Tuesday morning at 9.20am it was trading at $1,812 (R34,155).