Bitcoin price hits $39,000 for the first time in 6 weeks

After nearly six weeks of downward spiral, Bitcoin, on Sunday surged $39,000 for the first time since mid-June, pumping $114 billion to the crypto market. The bullish surge followed a recent sell-off.

According to data from CoinDesk, bitcoin traded at nearly $38,059 at exactly 11:05 p.m. ET, up nearly 11% at the same time the previous day. The cryptocurrency then hit a 24-hr high of $39,544.29, the highest level since mid-June. The rally helped other cryptocurrencies, with ether surging 5.9%, about $2,299.55.

The bitcoin rally followed a price drop below $30,000 after a global stocks sell- off, which sparked uncertainties and fears that the price could drop lower. However, experts said there were bullish factors that indicated the possibility of bitcoin hitting $29,000 to $30,000, with the possibility of $40,000.

Experts have attributed the surge to several bullish factors including comments from Twitter CEO Jack Dorsey, Tesla boss Elon Musk, and ARK Invest CEO Cathie Wood shared bullish comments on bitcoin during a recent bitcoin conference called "The B-Word".

Dorsey said bitcoin is part of Twitter's "big future". While Musk said that Tesla would soon start accepting payments in bitcoin for vehicle purchases as a greater percentage of bitcoin mining is now done with renewable energy. Tesla previously stopped accepting payments in bitcoin due to concerns over the "rapidly increasing use of fossil fuels for bitcoin mining."

The bitcoin mining process is one that consumes a lot of energy to power a complex computer used to solve complex math problems to create new coins. Bitcoin miners, therefore, require a lot of energy to get the mining rigs to run at full capacity.

Other contributing factors to bitcoin's rally includes comments from e-commerce giant Amazon. An amazon spokes person told CNBC that the company is looking to add a digital currency and block chain expert to its team which suggests that the company is highly considering the possibility of accepting payments in bitcoin and other cryptocurrencies. The spokesperson said the company is "inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon."

According to bitcoin mining engineer, Brandon Arvanaghi, the bitcoin rally has also contributed to a so-called "short squeeze". Investors who short bitcoin and bet that the prices will fall lower may have to cut losses and exit their positions if the prices go higher. This will make the prices go even higher if these investors have to exit their positions. Some experts believe that the price surge was likely driven by over-leverage shorts.