Bitcoin’s rapid ascent over the last week has seen it soar to highs above $57K and hit a market cap of over $1 trillion. That consistent rise faced a brief but intense correction, taking the coin to a low of $53,905 on the Binance exchange last night.
John Cho, the Director of Global Expansion at Ground X, explained in a Feb 21 tweet that the spike lower served to fill buy orders at the bottom of the range.
The BTC price rebounded quickly from the brief overnight correction, hitting a new price record above $57,800 on Sunday morning. John Cho hailed this recovery in a follow-up tweet, noting:
“Looks like $BTC just wanted to retest the monthly resistance. Great bounce; but still cautious. Another retest after this funding round could be on the cards. Neutral for now.”
As of this article’s writing, the BTCUSD pair is consolidating gains at its price of $57,393 as the bulls get ready to push the coin higher. Despite dipping significantly lower last night, the world’s leading crypto remains well supported and is likely eyeing a test of $60K.
BTCUSD Chart By TradingView
The Largest Coin’s Rise Exposes Issues with Current Fiscal Policies
Bitcoin’s dizzying climb over the past few months has come on the back of unsustainable fiscal and monetary policies from world governments during the Covid-19 pandemic.
The digital asset’s latest uptick to a new ATH was also fuelled by a raft of bullish news over the past week, such as the first Bitcoin ETF rollout in Canada.
While addressing the ongoing bitcoin ascent, analysts from the Washington Post argued that the price surge should prompt regulators to examine their monetary policies.
An editorial posted by the news outlet on Feb 20 urged the U.S. Federal Reserve to study the consequences of their commitment to zero interest rates.
“The best reason to focus on bitcoin’s rise is what it tells us about the risks that may be bubbling up amid the Federal Reserve’s commitment to zero interest rates,” noted the Post’s editorial board.
The Fed’s efforts to revitalize the pandemic-afflicted economy have caused a shortage in suitable investments, driving more investors into speculative assets such as BTC.
Elon Musk Hits Out at BTC
The Washington Post editorial quoted a recent tweet by Tesla CEO Elon Musk, where he spoke against negative interest rates.
The billionaire, whose company recently invested $1.5 billion of its treasury funds into BTC, stated that only a fool wouldn’t look elsewhere when fiat currency has negative real interest.
However, Musk threw the crypto community a curveball by stating that bitcoin is “almost as B.S. as fiat.”