Bitcoin is Back and Breaks $50,000 Once Again
Bitcoin once again passed the $50,000 mark on Tuesday, recording $50,297 according to CoinMarketCap data. What previously would have been seen a milestone, it now “just” signals the continuation of the bull-run where almost everyone believes Bitcoin will make it to $100,000 or even $200,000 in coming months.
The largest cryptocurrency by market value has surged 20% in the past weeks in contrast to the S&P 500, Wall Street’s benchmark equity index, which dropped by 3%. Bitcoin seems to have decoupled from the S&P 500 and determined to sail its own course.
Bitcoin’s rise back over $50,000 looks to be the result of a few factors. Fears of inflation in the US are ever increasing, especially after US president Biden announced that getting deeper into debt, would be the best way to get rid of existing debt. The Euro-zone is also expecting inflation continuing to rise the coming months.
A possible approval of a bitcoin exchange-traded product (ETF) by the US Securities and Exchange Commission, which could happen in a matter of weeks, is also a potential benefactor to the bullish momentum. Analysts expect an approval by the SEC to spark a year-end crypto rally.
Lastly, while institutional interest and inflow has not declined in the past months, October has historically also been the start of Bitcoin’s strongest period of the year, Q4.
The “supply shock warning” that was issued four weeks ago, stil holds valid. Exciting times ahead.
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Author: Peter Siu