Bitcoin (BTC) is rallying on a wave of positive sentiment as it prepares to raise $ 50,000.
After an unstable weekend that hit a new all-time high, potential clients are back in the limelight with Bitcoin as the game kicks off at a basic level – what’s in store for them?
Cointelegraph is looking at five factors that could potentially move the market over the next few days.
Stocks are winning and the dollar is falling
Stocks are rallying based on an all-time high where indices are already higher than ever before.
Despite warnings that the good times could be over soon, including from the Warren Buffett market index last week, markets started in positive territory on Monday.
The Japanese Nikkei index for the first time since 1990 reached 30,000 points with a growth rate of 1.6%.
Bitcoin (BTC) is trading with a 90-day correlation against the US dollar, VIX, gold, S & P500. Source: data on digital assets.
Meanwhile, the strength of the US dollar continues to fluctuate. The US Dollar Index, which measures the US dollar against a basket of trading partner currencies, abandoned its last attempt at bouncing later this week to retest 90 support.
The index has been in bearish sentiment for most of the past year and Bitcoin has once again recovered from periods of apparent weakness and experienced a pullback during the retracement of the opposite trend.
Over the long term, however, central bank money printing ensures that the economic environment in many jurisdictions does not return to normal anytime soon.
In response to the European Central Bank’s Valentine’s Day posting, Sayfuddin Amus, author of the popular book Bitcoin Standard, did not express much sympathy. The fund promised to “maintain favorable financing conditions” until the end of the crisis.
He replied, “This is why compulsive people spend their lives compassionately, breathing heavily from one imaginary crisis after another.”
“A lot of prrrrrrr should be done in a crisis!”
$ 50,000 or not $ 50,000? it’s a question
As for Bitcoin specifically, this week it is (mostly) short-lived for investors.
In particular, one event – how and when the largest cryptocurrency will surpass $ 50,000 – is a controversial issue for the entire industry.
A concerted effort was made over the weekend to break the last psychologically significant level with classic off-hours volatility and a new full-time production price of $ 49,714.
As sellers lined up at the last hurdle, the bears escaped $ 50,000 and the Bitcoin / USD fell before continuing to consolidate to around $ 47,000.
“AND? Is the bitcoin market not moving in a straight line? ” Cointelegraph Markets analyst Michael Van de Pope summed up the results on Monday.
Van de Pope has often warned that Bitcoin’s vertical bullishness cannot be sustained without many, sometimes severe, reversals.
Meanwhile, according to their own predictions, other filbfilb analysts have drawn up a new chart with a potential BTC price of $ 78,000 at the end of the month.
In a comment on Twitter, he added, “The constant good news we’ve seen makes me believe it’s possible.”
“50 kg can be squeezed easily, so the volume speaks volumes.”
This target expands on filbfilb’s previous forecast of $ 52,000 and reaches its next pre-race consolidation point of $ 63,000.
Those who refuse coins believe the game is lost
Philbfilb’s “good news” points to an ongoing phenomenon that reminds us of the domino effect among large organizations that overvalue bitcoin and turn into an uptrend.
Tesla made big profits just last week, and America’s oldest bank, BNY Mellon, announced that it will provide cryptocurrency support to institutional clients. Predictions now focus on Morgan Stanley, which is officially spreading rumors about a new Bitcoin outlet that allegedly includes an investment arm.
At the same time, opponents of success seem to be increasingly disenchanted with their inability to stop it in traditional ways.
The main problem is Nigeria, where politicians admitted last week that Bitcoin undermined the value of its national official currency, Naira.
Senator Sani Moussa said: “Cryptocurrency has become a global transaction. You can’t even determine who owns what. ”
“This technology is so powerful that I don’t see any regulation that we can put in place. Bitcoin has made our currency almost useless or worthless. ”
The picture is as different as possible from the state of those who already have, to a greater or lesser extent, the “Bitcoin standard”.
Even Tesla, which she bought in early 2021, is already up 40% from the $ 1.5 billion government transfer.