Bitcoin topped $50K for the first time since May which is a major price milestone as the crypto market keeps on breaking out from its spring crash and the summer slump so let’s take a closer look at our latest Bitcoin news.
The world’s biggest crypto by market cap surpassed $50,000 and the time of writing it is up by 2.6% in the past 24 hours or 5.6% in the past week but also 55% in the past month according to CoinGecko. The last time we saw bitcoin at this level was in May just after Tesla CEO Elon Musk said that his company will not accept BTC as a payment for the cars due to environmental concerns. That news along with the crackdown in China sent BTC crashing in the next few days that followed.
Musk’s 180-degree turn stunned investors since Tesla purchased $1.5 billion worth of BTC three months earlier and that purchase boosted the confidence among the retail and institutional investors. The damage was further enhanced the following week when the Chinese governemnt vowed to crack down on BTC mining and trading. The wider market tends to tailgate the BTC price movements and all major cryptocurrencies started to plummet after the bad news. Bitcoin lost more than half of the value and dropped below $30,000 on a few other occasions over the past few months and most of the loss slowly started recouping and the rest of the market followed.
Most traders consider $50,000 a marker of success and breaching it paves the way to other higher numbers like $60,000 and $55,000. when the price dropped below $50,000, crypto exchange Kraken’s trading team said that they saw a huge selling by the traders. The drop coincided with President Biden’s proposal for a US capital gains tax hike. The Kraken managing director Jonathon Miller said:
“While it’s tempting to look at the news cycle, it seems more probable that the technical and psychological importance of the $50,000 level is most relevant.”
As Bitcoin topped $50K so will the return to $60,000 look more realistic now?
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