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Crypto News Updates

“Wonderful” Shark Tank Investor Shifts Portion of Portfolio To Bitcoin and Ethereum

Although Bitcoin couldn’t hold above the $1 trillion market cap for very long, doing so in the first place might have been a turning point for even the most skeptical investors. It has even caused one Shark Tank investor to change his tune, shifting a portion of his portfolio into the highly volatile asset. Here’s how else the cryptocurrency asset class has been able to turn other high-wealth investors from naysayers into believers.

ABC’s Shark Tank Investor Kevin O’Leary Allocates 3% Into Bitcoin And Ethereum

Cryptocurrencies like Bitcoin and Ethereum are extremely volatile compared to traditional asset counterparts. That volatility has kept Shark Tank investor Kevin O’Leary from making a bid on the asset class for years, aside from a small purchase he made on Coinbase in 2017.

RELATED READING | ONE YEAR LATER: BITCOIN EMERGES AS “THE STIMULUS ASSET”

Over the last few years, the affectionally-dubbed “Mr. Wonderful” has appeared on CNBC blasting the asset class as “garbage,” but he’s now bought into weighted bucket of Bitcoin and Ethereum with at least 3% of his portfolio, according to a recent segment.

O’Leary says that the volatility the asset class is notorious for still “sickens” him, but that he’s “getting used to it” and thinks that crypto is “here to stay.”

 bitcoin ethereum shark tank kevin oleary

The rise of Bitcoin and Ethereum over the last year has been undeniable | Source: BTCUSD on TradingView.com

Crypto Wins Over Mr. Wonderful, What Happens When The Feeding Frenzy Begins?

O’Leary is a mainstay on ABC’s Shark Tank, alongside other wealthy entrepreneurs and investors such as Robert Herjavec, Lori Grenier, and Mark Cuban. Cuban, another crypto pundit who once said he’d rather have bananas than Bitcoin, has also recently come around to the asset class.

Cuban hasn’t necessarily given much support to Bitcoin itself, but has recently dabbled in NFTs in recent months.

RELATED READING | FAMED INVESTOR, BLACK SWAN AUTHOR IS “GETTING RID OF” HIS BITCOIN, HERE’S WHY

Bitcoin and Ethereum, have grown enormously in ROI, market cap, and adoption. The pandemic and resulting stimulus-related money printing propelled the digitally scarce asset with futuristic, decentralized use cases into the forefront of finance, and since then, no one can deny their relevancy and potential.

With that widespread realization that these technologies are “here to stay” as O’Leary said, there’s a mad dash to buy in now rather than paying increasingly higher prices later on. High wealth individuals like O’Leary, whose net worth is reportedly around $400 million are only just starting to allocate 3% of their portfolios and look what how much the asset’s price has appreciated.

What will the result be when large portfolios are crypto-dominant? It is a future that’s hard to imagine for the time being, but as the asset class has shown its transformative potential has nowhere nearly been tapped, and is only just beginning to show what it is capable of.

Featured image from Deposit Photos, Charts from TradingView.com

Source: Bitcoinist News

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Crypto News Updates

Coinbase Considers Bitcoin Creator A Risk To Business, Here’s Why

Popular Bitcoin (BTC) exchange platform Coinbase has filed to go public this week. Within the company’s filing with the US Securities and Exchange Commission, it has been revealed that the San Francisco-based giant considers a comeback from the coin’s creator Satoshi Nakamoto a serious risk to its business. Here’s why the crypto exchange is so fearful of the mysterious individual or group behind the pseudonym.

Coinbase Fears A Comeback By Satoshi Nakamoto

Coinbase has long been a market leader in the cryptocurrency space, offering one of the most downloaded and accessible apps for Apple’s iPhone and Android smartphones. It’s institutional centric platform, Coinbase Pro, has become the go-to for major players, rumors to range from Tesla, to Square, and more.

The company’s overall momentum combined with the cryptocurrency trend rising so rapidly, compelled the brand to file to go public this week after long-running rumors. In the prospectus presented to the SEC, Coinbase considers Satoshi Nakamoto a potential business risk among other examples.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

Other risks include hacks, quantum computing, and other issues that would impact the general health of the market, which Coinbase says its business is tied to. But why is Coinbase, according to the SEC filing, so freaked out about “the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin?”

The answer is in the coins themselves.

bitcoin satoshi nakamoto coinbase

SATOSHI NAKAMOTO COULD BE WORTH MORE THAN $50B AT CURRENT BTC PRICES | SOURCE: BTCUSD ON TRADINGVIEW.COM

Bitcoin Creator Wallets Contain 1M BTC: What That Means For Crypto

Satoshi Nakamoto is said to be the owner of wallets containing more than 1M in BTC, a substantial portion of the asset’s hard coded and limited supply. At current Bitcoin prices, Nakamoto would be ranked in the top twenty-five billionaires according to the Forbes real-time list of the world’s wealthiest.

Yet no one knows for certain who that person or people might be, or if some day they return to sell their coins. As the asset’s creator, they likely wouldn’t have intention to disrupt the network or integrity of the market itself, and wouldn’t do anything harmful purposely. However, uncertainty is a main component of FUD, and nearly as anxiety-causing as fear or doubt.

RELATED READING | BITCOIN TREND STRENGTH MORE POWERFUL THAN 2017, ONLY JUST BEGINNING

Not knowing what would happen in the “what if” scenario could cause a selloff in the speculative asset one way or another, which is why Coinbase calls attention to the business risk.

To this day, no one is certain of who Satoshi Nakamoto is, if it was a group or individual, or if they’re still alive today.

FEATURED IMAGE FROM DEPOSIT PHOTOS, CHARTS FROM TRADINGVIEW.COM

Source: Bitcoinist News

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Crypto News Updates

Fractal From Last Bull Run Says Bitcoin Will Hit $100K By May

Bitcoin price is back over $50,000 after bullish news broke this morning regarding Coinbase officially filing to go public. However, according to a fractal from the last bull market cycle kicking off in early 2017, that number could be merely the halfway point to where the cryptocurrency will trade in just two months from now.

Here’s a look at the similarities between the two cycles, and the roadmap that takes the price per BTC to $100,000 and higher within the next couple of months.

Characteristic Bitcoin Volatility Returns, Price Swings Reach $10,000 In A Single Day

Bitcoin volatility is picking up, starting with an explosive move from $10,000 to $50,000 in a few short months. The complete repricing of the coin has been due to institutional investors scrambling to buy what they can of the scarce crypto asset.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

At only 21 million coins and a market cap of under $1 trillion, Bitcoin is expected to grow in the long-term reliably. And in an economic climate where growth is challenging to come by, the cryptocurrency has become especially attractive.

But as Bitcoin price discovery takes place, volatility is bound to ensue and is has in recent weeks as the cryptocurrency recently shed 20% in a single day. At prices of $50,000 per coin, a 20% dive means $10,000 in value apiece evaporating into thin air, compared to the $1,000 per plunge crashes during the last bull market.

bitcoin price fractal $100k

The structure is strikingly similar, albeit less volatile overall | Source: BTCUSD on TradingView.com

Early 2017 Fractal Suggests Deeper Downside Possible, Rebound To $100K By May

On the way up the last time around, price action closely resembled the current market volatility. Taking a comparison between early 2017 when Bitcoin was trading in the four-digit range and now, the similarities are strikingly clear.

If the same path is followed, Bitcoin could see further collapse before experiencing a sharp rebound to more than double the price. The price action will play out quickly, taking Bitcoin price first to $75,000 in April, then $100,000 by the time May rolls around.

RELATED READING | BITCOIN TREND STRENGTH MORE POWERFUL THAN 2017, ONLY JUST BEGINNING

It is also important to note that the path following the fractal continues onward from there as well. By the time the fractal runs out of room on the price chart above, the cryptocurrency tapers off at just $2,000 per BTC.

The cryptocurrency did another 10x from the end of the above price action, and if the fractal continues the same from current levels, it could potentially put each Bitcoin at a price of $1 million per coin before the top of this cycle is in.

What do you think – can Bitcoin price really climb that high before the next peak is in?

Featured image from Deposit Photos, Charts from TradingView.com

Source: Bitcoinist News

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Crypto News Updates

5% Of Bitcoin Supply Expected To Be Used As Collateral By 2023

Only recently has the world of finance open its eyes to the potential of Bitcoin. As the asset’s price climbs, the various use cases it could serve also comes to light. According to new data, as much as 5% of the total BTC supply is projected to be used as collateral by the year 2023.

Here’s why Bitcoin is quickly becoming the collateral asset of choice, and how the cryptocurrency can achieve such penetration within just two short years.

BTC Collateralized To Reach 1M Worth of Total Supply

Bitcoin was first imagined to be the first ever form of peer-to-peer digital cash and at the time was virtually worthless.

Since then the cryptocurrency’s narrative has evolved several times from a payment currency, to a store of value, and more recently, “digital gold.” At the same time, the price per coin has ballooned year over year and is now trading around $50,000.

RELATED READING | BITCOIN MARKET CAP TOPS $1 TRILLION FOR FIRST TIME EVER

In the future, the leading cryptocurrency by market cap’s narrative is expected to shift toward a unit of account instead. However, a detailed report released by Arcane Research in collaboration with cryptocurrency exchange Bitstamp, claims that the future of banking collateral will be built on BTC.

btc bitcoin narratives

Bitcoin's narrative has changed many, many times over the years | Source: BTCUSD on TradingView.com

The report claims that BTC has been increasingly used for collateral in recent years, but the total supply locked up as collateral for things like loans or derivatives trading, could reach as much as 1 million coins, or 5% of the total supply sans Satoshi’s coins.

Bitcoin To Become The Future Of Collateral Assets

A more than 60-page report has been published entitled, “Banking on Bitcoin: The State of Bitcoin as Collateral.” The report details all the reasons supporting the case for BTC becoming the primary collateral asset, due to attributes only the cryptocurrency can provide.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

BTC represents as much as 95% of the open interest in Options markets currently. The cryptocurrency’s use in derivatives contracts demonstrated its effectiveness as a highly portable collateral asset, but that’s now evolving into traditional lending and more.

bitcoin collateral

The total BTC used as collateral could reach 1M by 2023 | Source: Arcane Research

The total Bitcoins used as collateral grew by over 1100% year over year, and is already nearing half a million BTC. This is theoretically expected to double by 2023, as the first ever cryptocurrency continues to disrupt the finance space.

Collateral globally is a $20 trillion market that Bitcoin is just waiting to tap into. If Bitcoin can absorb the $20 trillion to become the primary collateral asset, the cost per coin would near $1 million each.

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Source: Bitcoinist News

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Crypto News Updates

Clear Skies For Bitcoin As Tether Settles With NYAG

A dark cloud has been lifted from Bitcoin, and it could mean clear skies for the crypto market for here on out. Why? The most dangerous potential “black swan” hanging over the crypto market for years, has now been significantly derisked. According to breaking news, the company behind the stablecoin Tether and crypto exchange Bitfinex, has settled with the New York Attorney General’s office for some $18.5 million to clear the firm of accusations of “any wrongdoing.”

Here’s why this is such a big deal for Bitcoin, Ethereum, and the rest of the crypto market.

Dark Cloud Of Tether FUD Lifted From Crypto Market

Tether has long been the center of controversy in the cryptocurrency market. The stablecoin trading under the USDT ticker, earned itself a notorious reputation early on for a lack of transparency into the fiat and assets said to be backing the asset.

Tethers are tied one to one with the dollar in terms of value, and are said to be backed by a corresponding dollar or asset valued accordingly. The New York Attorney General’s office, however, made allegations against Tether after issues arose stemming from a portion of the company’s assets it could no longer access.

RELATED READING | ONE YEAR LATER: BITCOIN EMERGES AS “THE STIMULUS ASSET”

Tether today revealed that it has settled with the NYAG’s office for $18.5 million, while admitting to no wrongdoing. According to a statement, over 2.5 million pages of documents were submitted providing insight into operations, helping to defend the company’s innocence. ‘

A settlement, however, doesn’t fully prove innocence, so there’s no telling the true situation behind the scenes at Tether.

tether bitcoin usdt

As more USDT enters the market and supply rises, so does Bitcoin price | Source: BTCUSD on TradingView.com

Forecast: Clear Skies For Bitcoin And Altcoins

The stablecoin was also demonized for being used to manipulate the price of Bitcoin during the 2017 bull market. There’s also a direct correlation with new stablecoins entering the crypto market, and large Bitcoin uptrends.

One of the darkest clouds hanging over Bitcoin this entire time, however, has been the claim that the cryptocurrency market’s capital was nothing but unbacked capital built on Tether, that was ready to come crashing down as soon as this case concluded.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

The crypto community speculated it could potentially mean the end of the current bull market, had that information come to light. Instead, a settlement means the case is now closed, and the company is essentially cleared of “any wrongdoing” as it claims.

With nothing wrong to report, and no pending cases against Tether. There’s nothing but clear skies for Bitcoin and the rest of crypto.

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Source: Bitcoinist News

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Crypto News Updates

Whales Move $1.6B In Bitcoin Ahead Of Nearly 20% Selloff

Bitcoin price has been in a steady uptrend for months now, but a sudden sharp selloff turned the crypto market into a sea of red today. Ahead of the market turning red, a whale was spotted moving a substantial amount of BTC to a popular cryptocurrency exchange, taking reserves to the highest level all year. Since the deposit was made, nearly 20% has been taken off the price of the leading cryptocurrency by market cap. 

Here’s how on-chain data could have called the move in advance and what technicals are currently saying about the Bitcoin bull run.

Whales Move 28,000 BTC Worth $1.6 Billion Ahead Of Selloff

Yesterday, while Bitcoin price was setting records and nearing $60,000, a whale was making a massive deposit of 28,004 BTC to the Winklevoss twins owned cryptocurrency exchange Gemini.

bitcoin whale selloff btc

A whale moved 28,000 BTC worth $1.6 billion at the time to Gemini  | Source: CryptoQuant Alerts Beta

Cryptocurrency quantitative analysis platform CryptoQuant released an alert of the aggregated inflows to Gemini at roughly 2:30PM ET, and warned of the risk of potential dumping. Hours later, the price action began turning down.

RELATED READING | BITCOIN MARKET CAP TOPS $1 TRILLION FOR FIRST TIME EVER

The inflows marked the highest level of BTC hitting exchange reserves all year, and overnight the drop continued deeper. Leading up to the New York market open this morning, Bitcoin dove as low as $47,600 for the first time in over a week as shown below.

There’s no telling how many of the 28,000, worth roughly $1 billion at the time, have been sold or left to go, but the market has now been shaken.

bitcoin whale selloff btc

A massive red candle on the daily has been left behind following the 28,000 BTC deposit | Source: BTCUSD on TradingView.com

Technicals Suggest Uptrend Remains In Tact, Whales Can’t Turn The Tides

Bitcoin price suffered a deep plunge early this morning, shaving 17% off the price per BTC. Bitcoin has been in a strong uptrend, and despite the whale-driven selloff, there’s several layers of support that are still holding or remain untouched.

If the steepest uptrend line (dotted) fails, a fall to the next (dashed) trendline could follow. The dashed trendline coincides with horizontal support at $40,000, and would be a roughly 32% drop. The previous correction from $42,000 to $28,000, was only a 30% decline, and might all buyers will allow compared to past bull markets.

bitcoin whale selloff btc ta

Several lines of support remain for buyers to take position at | Source: BTCUSD on TradingView.com

Losing the dashed trendline and $40,000 wouldn’t mean the entire trend is over. Support at $30,000 could be retested, which would also match up with the lowest (solid) uptrend line.

RELATED READING | ONE YEAR LATER: BITCOIN EMERGES AS “THE STIMULUS ASSET”

The correction notably takes place at the blue dashed line, which was also a “top” back in August, as well as weeks ago at $42,000.

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Source: Bitcoinist News

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Crypto News Updates

Bitcoin Market Cap Tops $1 Trillion For First Time Ever

Bitcoin price just touched $54,000 per coin, and at a circulating supply of more than 18.6 million BTC, that brings the total market cap of the first ever cryptocurrency to $1 trillion. Here’s what this incredible milestone means for the leading cryptocurrency in the the market.

From $100 Billion To $1 Trillion In A Year

It was only months ago, when Bitcoin’s market cap reached on par with the likes of VISA and Mastercard, and other major banks. Weeks ago, it beat Tesla’s cap shortly after the company revealed it too had purchased BTC to add to its company reserves. Now, it has set another major milestone: surpassing a total market capitalization of over $1 trillion USD.

From literally worthless, Bitcoin the asset and network in its entirety is valued at a trillion dollars. The achievement is nothing short of amazing. Anyone who saw this outcome coming to fruition is now being rewarded by a piece of that massive pie.

RELATED READING | CAREER COMMODITIES TRADER CALLS BITCOIN CHART PARABOLA “HISTORIC”

What is even more impressive is that Bitcoin has risen from just $100 billion in total value around Black Thursday nearly one year ago, to ten times that value. And it has done so while most other assets have struggled to sustain continued growth.

The stock market has stagnated as of late, and gold has been in a downtrend as capital flows into Bitcoin instead. Now that Bitcoin has reached a market cap of $1 trillion, it will begin to demand a spot in the portfolios of every investor worldwide. Here’s why.

bitcoin 1 trillion btc market cap

Bitcoin reaches a $1 trillion market cap for the first time in its history | Source: CRYPTOCAP-BTC on TradingView.com

What a $1 Trillion Market Cap Means For Bitcoin

At a market cap under $100 billion, Bitcoin never had the liquidity necessary for companies or institutions to pay attention to. The market cap was always considered “tiny” by comparison to the likes of stocks and gold, but that is no longer the case at $1 trillion.

$1 trillion is in essence a key phycological level not necessarily for individual investors, but could be the “all clear” sign for more corporations to rush into the already scarce and trending cryptocurrency.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

Most signs point to Bitcoin not having reached the point of “mania” yet, but after breaking above $1 trillion in market cap, FOMO could pick up in momentum as higher wealth investors realize that they could be stuck paying increasingly higher prices if they don’t get in sooner than later.

Even though Bitcoin is overheated by most standards, reaching $1 trillion could actually reduce risk in the eyes of institutions, which now have the liquidity to tap into if and when they need it.

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Source: Bitcoinist News

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Crypto News Updates

One Year Later: Bitcoin Emerges As “The Stimulus Asset”

Bitcoin price is trading at above $52,000 currently, yet less than one year ago from today it struggled to crack $10,000. Failure sent the cryptocurrency plummeting to Black Thursday lows, but from there confirmed the bear market was over, and has been in an uptrend ever since. During that time, compared to all other assets, Bitcoin has emerged as “the stimulus asset” over gold and the dollar. Here’s more on how this came to be, along with what this means for the first ever cryptocurrency moving forward.

Bitcoin Emerges As The Stimulus Asset, According To DoubleLine Capital CEO

Bitcoin is is off to an incredible start to the year, after closing out 2020 as the best performing asset bar none. The epic rise from lows set during the pandemic panic selloff in March to highs reaching now over $50,000 is nothing short of incredible.

During a year that left much of the world reeling, Bitcoin showed its true strength.

RELATED READING | CAREER COMMODITIES TRADER CALLS BITCOIN CHART PARABOLA “HISTORIC”

Much of Bitcoin’s initial uptrend was driven by money incoming from government-issued stimulus checks. Bitcoin has grown over 690% since those checks were issued, meaning anyone who invested the full thing into the cryptocurrency, would now have over $8,200 to show for it.

DoubleLine Capital CEO Jeffrey Grundlach says that during that time, the performance of Bitcoin has made it “the stimulus asset” over gold. Evidence of the digital gold narrative working is everywhere in finance, but nowhere more notable than the cryptocurrency’s ballooning market cap, which is now on track for $1 trillion any day.

But what Grundlach is likely referring to isn’t what happened with stimulus checks, but instead what stimulus money in general created for an economic environment.

bitcoin stimulus asset

The price of each Bitcoin has grown by nearly 700% from the time stimulus checks were issued | Source: BTCUSD on TradingView.com

No Asset Class Has Benefitted More From The Pandemic Than Crypto

When the pandemic began, to combat the panic selloff in the stock market and elsewhere, and to stave off any economic impact lockdowns could have, governments began putting together stimulus packages to assist citizens with unemployment, offer loans to businesses, and much more.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

The expansion of the money supply created more and more dollars. Many of those dollars have since been converted into stocks, gold, and of course, Bitcoin. The impact of this kept stocks rising while the GDP sank, and gold initially began to trend upward.

It wasn’t until public companies began announcing they were holding BTC that the gold trend began to wane. Cryptocurrencies like Bitcoin offer a hard, limited supply amidst a time when money supply expanding rapidly, which is what truly makes BTC the “stimulus asset” over other assets like the dollar and gold.

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Source: Bitcoinist News

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Crypto News Updates

Career Commodities Trader Calls Bitcoin Chart Parabola “Historic”

Bitcoin blasting above $50,000 per coin made it clear that the parabola would continue, marking the third major parabolic phase in the cryptocurrency’s short lifecycle. Commodities trader Peter Brandt has seen many price charts throughout his storied career.

This sort of behavior in an asset is rare, according to Brandt. But three times? That’s “historic,” he says. And according to a chart he’s shared, the parabola has a lot more to go before it is at risk of breaking down.

Bitcoin Makes History With Third “Extremely Rare” Parabolic Phase

Bitcoin was designed to near perfection as an economic ecosystem. The self-sustaining network lets users store and send BTC all without a third party intermediary. Miners power the network by providing hash rate, and for their time, costs, and efforts, they’re rewarded in coins.

RELATED READING | NO END IN SIGHT: RECORD-SETTING BITCOIN RALLY BREAKS PAST $50,000

Every four years, the reward Bitcoin miners receive is slashed in half, throwing off the delicate balance of supply versus demand enough to highly favor price appreciation. The impact of the first and even the second halving happened naturally, but this time around, investors banked on the third time being the charm.

Another parabolic uptrend has begun, marking the third time that Bitcoin has done so since its code was first released onto the internet. Lightning rarely strikes twice, and parabolic moves of this nature long-time trader Peter Brandt says are “extremely rare.” Happening twice is shocking, and three times, Brandt says, is downright “historic.”

bitcoin Peter Brandt parabola historic

Peter Brandt says that parabola one time is “rare.” Three times is “historic.” | Source: BTCUSD on TradingView.com

Much More To Go Before The Top Is In, But Beware Of The Breakdown

Along with Brandt’s comments, the commodities trader and long time Bitcoin supporter also shared the chart above clearly defining each parabolic advance. The curve itself more closely matches the trajectory of the second cycle, while the cryptocurrency’s relationship with the moving average on the chart better matches the first post-halving bull market.

Brandt is considered a classical technical analyst, who relies on very few tools and the most basic of shapes and patterns. A channel the trader has drawn projects the top of the current parabolic phase to be much higher than current prices. That’s not to say that Bitcoin cannot correct back down to touch the moving average or the curve itself, it just suggests that the full extent of the move hasn’t yet been exhausted. Not even close in terms of dollars.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

Wherever Bitcoin tops, the fall is going to be devastatingly far this time around. A drop from $20,000 to $3,000 is crushing enough in terms of total percentage drawdown, but because – as Brandt points out and has been right about in the past – assets typically crash 80% or more when the parabola is finally violated, things will be exceptionally brutal.

An 80% fall from top projections around $200,000 to $300,000 would result in a loss per coin of $160,00 to $240,000 – taking Bitcoin back to, interestingly, this exact price point where support for the next bottom could be building.

Featured image from Deposit Photos, Charts from TradingView.com

Source: Bitcoinist News

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Crypto News Updates

No End In Sight: Record-Setting Bitcoin Rally Breaks Past $50,000

Bitcoin price has been on an absolute tear, setting record after record over the last several months. After consolidating for weeks at a level more than double the last cycle’s peak, Bitcoin is back to making new highs and now has now traded at $50,000 for the first time in its more than decade long existence.

Within moments of touching $50,000, however, sell orders began triggering. The initial rejection could suggest that the phycological resistance level might be a tough nut to crack. With the first ever cryptocurrency reaching such a pivotal level, here’s what could happen in the days ahead.

Bitcoin Blasts To $50,000 As Epic Rally Continues

Bitcoin this morning momentarily poked above $50,000 for the first time ever. The price point is a logical place for sellers to have set for a short- or long-term price target for their investment. When price action made its way a few hundred dollars above $50,000, enough sell orders triggered to send Bitcoin dropping by $2,000 back to $48,500, which now appears to be ironclad support.

bitcoin btc market 50000 50k

No 15 minute candles or higher could close above $50,000 on Binance | Source: BTCUSDT on TradingView.com

The reason for the increased bullish momentum despite higher prices, says Konstantin Anissimov, Executive Director at CEX.IO, is “corporate and institutional demand.” Anissimov also adds that “legal initiatives coming from American lawmakers and regional politicians” has had a positive impact on the adoption of cryptocurrencies as a whole.

RELATED READING | BITCOIN HASN’T REACHED MANIA STAGE YET, ACCORDING TO THIS METRIC

Demand isn’t only coming from those categories of investors these days, however. Celebs like musicians, actors, and athletes are showing support of the asset class, along with CEOs like Jack Dorsey and Michael Saylor. The influence of these figures as reignited retail interest in the crypto space, notably surrounding Dogecoin, and “small cap” altcoins that have boomed during the month of February thus far.

In terms of where Bitcoin might go next, the direction is more than likely up. On-chain metrics continue to lean bullish. BTC held on exchanges drops by the day, while addresses holding 1000 coins or more have gone parabolic. Supporting capital by the way of a sea of stablecoins sidelined and ready to flow into crypto, could keep the uptrend climbing for some time.

bitcoin btc market

The uptrend has taken Bitcoin to over $50,000 for the first time | Source: BTCUSDT on TradingView.com

For bearish signals, there aren’t very many, however, reversals can come when it is least expected, and $50,000 could be a level that’s attractive to take profit, despite a lack of sell orders currently. The Coinbase “premium” that’s remained prominent throughout the last several months has diminished, suggesting that spot buying power could be beginning to wane.

If Bitcoin can get through $50,000 and make it to the $1 trillion market cap, a flood of capital could soon be coming.

Featured image from Deposit Photos, Charts from TradingView.com

Source: Bitcoinist News