After several failed attempts over the past few days, the BTC/USD exchange rate finally established an intraday peak of $50,547 for the first time in its lifetime. Traders pumped the benchmark cryptocurrency to its new all-time high just ahead of the New York opening bell.
The rally past $50K came on the back of an announcement by MicroStrategy that it would offer $600M worth of convertible bonds to purchase more bitcoin.
The ballistic price movement was also spurred on by a weaker US dollar sentiment brought on by President Biden’s persistent efforts to pass his $1.9 trillion Covid-19 stimulus package.
Today’s inspired rally saw BTC extend its year-to-date gain to 72% and reach a market cap of nearly $925B, with the entire crypto Market breaking $1.5 trillion for the first time.
Nevertheless, a mounting profit-taking sentiment ensued an immediate rejection at the new peak. At the time of writing, BTC is consolidating gains at its price of $48,416 as per data from CoinMarketCap.
BTCUSD Chart By TradingView
A New Historic Milestone For Bitcoin
Bitcoin’s explosive rally is primarily attributable to its widespread acceptance as an institutional-friendly asset.
In February alone, major companies such as Tesla, JPMorgan, Mastercard, and BNY Mellon have made significant moves to support the top cryptocurrency. More recently, Twitter’s Chief Financial Officer Ned Segal expressed the likelihood of making a copycat investment into bitcoin.
Despite the immediate downward correction, many analysts expect the BTC price uptick to continue further into the coming weeks. Bulls have fought hard to keep the BTC momentum alive over the past month, and they have finally attained the inevitable goal of breaching $50K.
“With Bitcoin breaking $50,000 a coin, I believe we’re reaching an inflection point where Bitcoin is essentially becoming the reserve currency of the internet,” Sergey Nazarov, the co-founder of Chainlink, commented.
He added that more institutions would likely gain the confidence to allocate to bitcoin due to the recent Tesla BTC purchase.
Antoni Trenchev, CEO of crypto lender Nexo, shared a similar sentiment to Nazarov, arguing that the $1.5 billion Tesla investment in BTC will likely break the mold for many corporate copycats.
BTC Edges Closer to Mass Adoption
More analysts weighed in on today’s watershed moment for the world’s leading cryptocurrency, which was accompanied by the liquidation of over $400M in BTC futures over the past 24 hours.
According to Adam Liposky, an exec at the blockchain data platform Pocket Network, today’s historic run will bring more capital inflows into the crypto space and encourage blockchain tech innovations.
“The run we are experiencing today is illustrative of the widespread adoption of initial blockchain implementations, typified by Bitcoin and Ethereum. This is just the beginning,” Liposky concluded.