BTC, the world’s largest digital currency, just surpassed the $50,000 mark for the first time in history with a current market cap of nearly $925B.
The prices came as no shock as significant companies are into getting into cryptocurrencies. Traders’ prejudice was caused by several festive events over the past week, from the $ 1.5 billion Tesla to Mastercard bitcoin investment to BNY Mellon’s decision to incorporate cryptocurrency into existing financial services, which was sufficient.
Bitcoin’s Move Past $50,000
According to Coin Metrics, the leading crypto by market value rose more than 3% to a record $ 50,487, before fell below the mark, trading at $48,952.
Nevertheless, traders with a short-term risk appetite ignore Bitcoin’s bullish long-term outlook. They effectively liquidated their bullish position above $ 50,000 for-profit, causing the BTC / USD exchange rate to drop about 4.22 percent to $48,510.
The simple 200-5M moving average prevents the correction from widening the bias. The bulls returned to the market in a $ 48,500-49,000 range to raise prices. Higher lows on the five-minute chart confirm another bullish move and indicate the possibility that BTC / USD may reclaim USD 50,000 and break further north.
Michael van de Pope, an independent market analyst, notes that while $46,000 to $46,500 as major support levels, he suggests that the road to $53,000 and possibly 63,000 is there. He lost $46,000-46,500 and entered the next zone with $42,000.
Institutional Support Will Drive Further BTC Demand
Bitcoin and other cryptocurrencies have been gaining momentum recently, thanks to the support of various well-known investors, standing as the main reason for the surge in Bitcoin’s value.
Tesla Inc., an American electric vehicle and clean energy company led by tech billionaire Elon Musk recently purchased $1.5 billion worth of bitcoin. After the announcement, the digital asset’s prices hit a record high of more than $43,000.
American multinational financial services Mastercard will allow transactions in selected cryptocurrencies directly through its network before the end of 2021. Last year, the company worked with Wirex and BitPay to create crypto cards that people can use to transact their cryptocurrencies.
Twitter boss Jack Dorsey also said he and Jay-Z plan to develop a bitcoin development fund. His initial focus was on the Bitcoin development team in Africa and India. He announced that they both donated 500 bitcoins (approximately $ 24 million on Friday) for the purpose.
However, skeptics see Bitcoin as a speculative asset and fear that it could become one of the giant market bubbles in history. Economists like Nouriel Roubini said that Bitcoin and other cryptocurrencies have no intrinsic value. According to a recent study by Deutsche Bank, investors view Bitcoin as the most extreme financial market bubble.