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Bitcoin Sets New Price Record of Slightly Above $50K

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by Steve Muchoki · 3 min read
Bitcoin Sets New Price Record of Slightly Above $50K
Photo: Unsplash

Bitcoin futures contracts (BTCG2021) on the Chicago Mercantile Exchange, hit a high of $50,500 today.

After being trapped below $50k in a horizontal consolidation, Bitcoin spiked to trade slightly above $50k today morning. According to metrics provided by CoinGecko, Bitcoin rose to a new price record of around $50,350.06. Meanwhile, the asset was trading around $49,655.41 at the time of writing, after adding approximately 3.7% in the past 24-hours.

Bitcoin’s recent rally has been noted to be fueled by institutional investors who are seeking to diversify their investment portfolio and at the same time their balance sheet. Besides, financial institutions have shown possible interest in accepting Bitcoin as a legitimate asset class as observed with BNY Mellon and also JPMorgan. Tesla‘s (NASDAQ: TSLA) recent move towards Bitcoin and crypto investment has significantly shifted the paradigm of institutional investors towards the crypto industry.

Bitcoin Price Record: Factors

Notably, the ongoing rally has been significantly attributed to institutional investors’ hype rather than 2017/2018 that was mostly fueled by retail investors. With institutions like MicroStrategy, and Grayscale adding more units of Bitcoin by the day, the scarcity and low supply is eventually going to catch up with the Bitcoin price and make it rally further.

Prior Bitcoin price predictions have indicated the asset could rally beyond $100k, whereby JPMorgan sees the asset hitting around $146k soon.

Meanwhile, Bitcoin futures contracts (BTCG2021) on the Chicago Mercantile Exchange, hit a high of $50,500 today. In addition, approximately $358 million in bitcoin futures have been liquidated over the past 24 hours, according to Bybt.

As the institutional and retail investors bet at a higher Bitcoin market price, analysts have warned the asset may experience higher retracement along the bull rally, reaching up to 30%. However, the overall trend remains upward and likely to take place in the next twelve months according to some analysts.

Bitcoin price continues to significantly impact the entire altcoin market despite some rallying higher than others. The entire crypto market capitalization has notably surpassed $1.5 trillion after adding approximately 3% in the past 24-hours. Bitcoin still controls a huge chunk of the market share, whereby it has a market dominance of around 60% followed by Ethereum with a market dominance of approximately 13%.

The crypto industry has significantly benefited from the ongoing coronavirus pandemic that has crippled most businesses globally. Different organizations are working to add Bitcoin and other digital assets in their payment structure. Recently, Uber noted there are possibilities of adding Bitcoin as a form of payment on its platform.

From the technical point of view, Bitcoin remains on the upward trend both in the higher and lower timeframes. The asset has been making higher highs and higher lows.

Bitcoin News, Cryptocurrency news, News
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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