In early trading today, we saw Bitcoin hit $50,000 for the first time, then back off significantly from that price point.
What’s going on with BTC? Yashu Gola at NewsBTC cites interest from companies as diverse as Tesla and Bank of New York Mellon in the latest run-up of Bitcoin prices. Then, he contends, a weak dollar, quantitative easing and concerns of a recovery plan led the bears back into the market.
“Traders with short-term risk appetite decided to ignore Bitcoin’s long-term bullish outlook,” Gola writes. “They effectively liquidated their bullish positions above $50,000 to secure profits, leading the BTC/USD exchange rate lower by as much as 4.22 percent to $48,510.”
In additional coverage from days past, Gola talks about Bitcoin money moving to “rich wallets,” and how long term holders may affect the market.
“Bitcoin’s transfer from low-balanced wallets to rich ones further reflected a long-term growth scenario in the market,” Gola wrote over the weekend. “The small traders sold their cryptocurrency holdings to secure short-term profits but handed them over to investors that would provide tailwinds to the so-called HODLing sentiment, in which people ‘hold’ bitcoin for at least six months.”
Bradley Keoun at Coindesk agrees, mentioning “crypto nouveau riche” moving in with market impact.
“Break of psychological threshold pushes largest cryptocurrency’s year-to-date return to 70%, as a new breed of upstart tokens pushes industry market cap past $1.5T,” Keoun opens in a chronicling of past BTC action. “The market value of all cryptocurrencies has topped $1.5 trillion for the first time, and it’s interesting to note just how much of that growth has been fueled by speculation over which projects might be the most promising – rather than just the pumping of also-ran tokens that dominated the industry’s top ranks in recent years.”
Check it out – with BTC values down to as low as under $4000 over the past year, the 1000% increase is nothing short of astounding. Think about where BTC is likely to go from here.