Price of Bitcoin Firm Above $50000

Bitcoin once again surpassed $50,000, will it usher in a new bull market rise?

Yesterday, Bitcoin once again saw a strong rise, breaking through the $50,000 mark, rushing to a maximum of 52,600 U.S. dollars. Since then, it has basically stabilized the key position of 50,000 U.S. dollars.

 

Bitcoin once again surpassed $50,000, will it usher in a new bull market rise?

The position of $50,000 is the final orientation of various technical indicators. If it can stand firm, it indicates that the market trend is beginning to be clear, and bulls will take the lead. This will end the market confusion caused by the previous sharp decline and basically determine the direction.

 

Bitcoin once again surpassed $50,000, will it usher in a new bull market rise?

Affected by the rise of Bitcoin, cryptocurrencies have shown a general upward trend: 91 of the top 100 tokens in market capitalization have risen only 9 fall; related concept projects have also risen almost all, and the increase is not small, the minimum increase is more than 5% .

 

Bitcoin once again surpassed $50,000, will it usher in a new bull market rise?

The rebound of Bitcoin’s market is closely related to the performance of mainstream finance. The trend of US stocks has a great influence on its market.

 

Yesterday, the rise in U.S. Treasury interest rates and the decline in U.S. stocks once again strengthened the positive effects of inflation expectations on Bitcoin. This is an important indicator to support the Bitcoin bull market.

 

Under the pressure of the mainstream economy, institutions and individuals have shown a more friendly attitude towards Bitcoin. Recently, some survey data on cryptocurrencies indicate this trend:

 

According to a recent survey conducted by Blind, an anonymous professional network for technical professionals, 50% of professionals “trust” cryptocurrencies, and 57% of professionals currently own cryptocurrencies. The survey asked 1,800 respondents who were employees of Twitter, Amazon, JPMorgan Chase and various other companies.

 

In addition, according to U.Today news, a recent survey conducted by JPMorgan shows that 7% of institutional investors believe that cryptocurrencies may eventually become one of the “most important” assets.

The list of interviewees included representatives from nearly 1,500 institutions around the world, and more than 11% of companies have been involved in cryptocurrency.

 

Cathie Wood, the founder of ARK Fund, said that more companies are expected to include Bitcoin on the company’s balance sheet.

 

It is foreseeable that institutions will increase their investment in Bitcoin and cryptocurrencies, and the flow and funds brought about will maintain the continued upward trend of the Bitcoin market.

 

The favorable policy has also further deepened the rising signal of Bitcoin:

On the one hand, the U.S. SEC Inspection Office has listed cryptocurrency as a priority for 2021, and more standardized supervision will promote a more healthy development of the cryptocurrency market.

Oon the other hand, The US Internal Revenue Service stated that the purchase of cryptocurrencies with fiat currency will not trigger tax reporting rules, which provides investors with a more assured investment and trading environment.

 

Cryptocurrency assets have been included in the 2021 priority list by the US SEC Inspection Office.

The assessment of the crypto-asset market organizers will continue to evaluate the following:

Whether the investment is in the best interests of investors. The safety of client funds and assets; pricing and valuation; the effectiveness of compliance plans and controls. Supervision of representatives’ external business activities Wait.

High rise in Bitcoin Prices

According to CoinDesk, the U.S. Internal Revenue Service (IRS) said on Tuesday that it will not require cryptocurrency investors who only use “real currency to purchase virtual currencies” in fiscal year 2020 to report the transaction in this year’s tax returns.

This clarification was published on the encryption FAQ page of the tax bureau, effectively exempting taxpayers who purchase bitcoins with U.S. dollars from checking the cryptocurrency box on their annual 1040 accounts. However, the scope of the exemption is very narrow.

According to the latest IRS FAQ update, investors who exchange one cryptocurrency for another cryptocurrency, sell their positions, or receive token airdrops still need to check the cryptocurrency box.

 

Loose taxation and regulatory standards will create a more favorable development environment for Bitcoin, thereby expanding the interest of mainstream investors and increasing investment in cryptocurrencies. This is also an important factor in consolidating the Bitcoin market.

 

Bitcoin seeks a breakthrough rise blocked

However, judging from the actual reaction of the market, although Bitcoin stands firmly at the $50,000 mark, it is still somewhat difficult to obtain a more substantial breakthrough rise.

 

Recently, there have been some new changes in the market. Investors have shifted from a single interest in Bitcoin to a broader scope. The rise of Defi and NFT has dispersed investors’ interest in Bitcoin.

 

Recently, Grayscale has newly registered 4 trust fund products including NMR, RSR, GRT, and FLOW, and is considering adding AAVE, BAT, ADA, LINK, COMP, ATOM, MANA, EOS, FIL, LPT, MKR, DOT, STX , SUSHI, SNX, XTZ, UNI and YFI and other digital assets.

 

Bitcoin Price Hike above 50k

This shows that more cryptocurrencies have entered the scope of investors’ attention, and market demand has expanded from mainstream currencies represented by Bitcoin to new assets such as cross-chain and Defi.

 

At the same time, in addition to Defi, NFT has also risen rapidly since the beginning of this year, which has also caused widespread concern in the market.

 

Recently, frequent NFT information has appeared in the media. The release and sale of art, music, NBA, etc. in the form of NFTs has caused a market sensation, and its price and profit effects have become the focus of investors’ attention.

 

For example, the “Homer Pepe” (Homer Pepe) NFT artwork created based on the famous cartoon character “Pepe Frog” by artist Matt Furie was sold for 205 ETH ($320,000), which caused a sensation in the market. Make NFT enter the investor’s field of vision strongly.

 

Bitcoin Rising Above 50000

According to Google’s data, NFT-related searches have now surpassed Litecoin (LTC), Bitcoin Cash (BCH) and Ripple (XRP), reaching their peak at the end of February.

 

According to the report of DappRadar DApp, the transaction volume of the top three NFT trading platforms reached 342 million U.S. dollars in February, an increase of nearly 400% from the previous month’s 71 million U.S. dollars.

 

With the rapid rise of NFT, the market effect brought by it has triggered investors’ pursuit and has become the object of consideration for investors to expand the scope of investment in cryptocurrency.

 

Li Qiwei, the founder of Litecoin, tweeted: There are many similarities between the NFT in 2021, the 1CO in 2017 and the altcoin in 2013. The NFT in 2021 has the following characteristics: easy to create new games without barriers, easy to understand and explain, bring a large number of newcomers into the cryptocurrency, high prices and high gas fees cause hype/FOMO, most people do not have value.

 

The FOMO sentiment in the NFT market has risen and it will inevitably attract investors to join.

 

Therefore, Defi or NFT has actually diverted investors’ attention to mainstream assets such as Bitcoin and Ethereum. Funds and flows have begun to tilt from Bitcoin to these areas, thereby reducing Bitcoin’s flow attention and capital blessing.

 

Judging from the above-mentioned actual benefits of Bitcoin, although most of the recent favorable situations are Bitcoin-friendly, there is no concentrated major event stimulus, and it is difficult to trigger new FOMO sentiment in the market, thereby breaking the new upward momentum of the market.

 

In the absence of major stimulus benefits and diversification of funds, it is very difficult for the market to achieve a breakthrough rise.

 

Therefore, there is a high probability that Bitcoin will remain at around $50,000 and fluctuate sideways for a period of time until new major benefits emerge.

 

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