Bitcoin on Tuesday climbed above $ 50,000 for the first time in five days. The first cryptocurrency is recovering from a 25% correction last week, which became the largest since the market crash in March 2020.
“This correction may have lifted short-term market overheating, laying the groundwork for a renewed highs renewal momentum,” said the FxPro analyst team.
The rally above $ 50,000 came shortly after the application for listing of the bitcoin ETF by the Chicago Board Options Exchange (CBOE). Shortly before this, MicroStrategy announced an investment of another $ 15 million in BTC, and the media reported that Goldman Sachs was ready to resume trading in bitcoin futures. Institutional traders are betting on Bitcoin’s rise to $ 75,000 and above, CoinDesk writes, citing data from the options market. The data indicates that institutions were not intimidated by the recent decline in BTC.
At the same time, LMAX Digital strategist Joel Kruger argues that the rollback may not be over yet. The biggest risk for bitcoin in the short term, in his opinion, is associated with the decline in the US and global stock markets.
“Once upon a time, the correlation of traditional and cryptocurrency markets caused rejection and rejection among bitcoin supporters. However, the situation has completely changed in just a few years. Now what is happening on the stock market is directly linked to the prospects for BTC and the entire crypto market, ”the FxPro team of analysts notes.
Mike Novogratz, CEO of asset management company Galaxy Digital, has sharply increased its forecast for bitcoin at the end of 2021. He noted that we are witnessing the growing interest of large and institutional investors in the top cryptocurrency, writes news.crypto.pro.
“Our business at Galaxy is booming. We do not have enough time to hire sales managers to reach all institutional clients who want to understand the market and participate in it, ”said Novogratz.
As more institutions use the flagship crypto asset, Bitcoin Bull predicts that BTC will reach $ 100,000 by the end of 2021. Meanwhile, the New York State Attorney General’s Office has warned of an “extreme” risk of digital asset investments.
The Financial Times criticized the Citibank report on the prospects for bitcoin. Representatives of the publication questioned the possibility of the first cryptocurrency to become a means of settlement in international trade, which was admitted by the analysts of the investment bank.
The 26-EMA served as a perfect indicator for the 2015-2018 Bitcoin rally as it was never lost on the weekly chart. Every time Bitcoin price was near this level, it had significant rebounds into new all-time highs.