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The value of bitcoin has risen to new highs this week, with the Federal Reserve playing a hand in stoking demand for the worlds most popular cryptocurrency.

Bitcoin (BTC/USD) rose 1.3% to $1,728.55 at 7:48 a.m. ET on Wednesday, according to CoinDesk BPI. Prices hovered between $1,690.40 and $1,731.56 during the session.

The cryptocurrency jumped on Tuesday to a fresh record after Minneapolis Fed President Neel Kashkari gave a bullish assessment of blockchain, the underlying technology powering bitcoin.

I would say I think conventional wisdom now is that blockchain and the underlying technology is probably more interesting and has more potential than maybe bitcoin does by itself, Kashkari, who is also a member of this years Federal Open Market Committee (FOMC), said at a technology conference, according to Reuters.

Kashkaris comments suggest the friction between central banks and digital money is slowly eroding. This would-be alliance certainly isnt out of convenience, given that central banks are primarily responsible for printing and regulating fiat money the very thing bitcoin is trying to combat.

The latest upsurge added $1 billion to bitcoins market capitalization in just 24 hours. The worlds most actively-traded digital currency now boasts an overall market value of more than $28 billion.

But the gains havent stopped there. Ethereum has also posted record highs this week, bringing its total market cap to $8 billion. Ripple has also surged this week, bringing its market value to nearly $7 billion.

Two other cryptocurrencies Litecoin and NEM also joined the billion-dollar club this week as the gold rush to digital coins continued.

Digital currency adoption is enjoying unprecedented strength as governments, banks and merchants begin to explore the value of a globally decentralized exchange system. Regulatory efforts in Japan last month could push back the adoption barriers and serve as a guidepost for other governments looking to legalize cryptocurrency.

Continued here:
BTC/USD: Bitcoin Prices Surge on Fed-Speak as Cryptocurrency Adds $1Bn in Market Value - Economic Calendar