The cryptocurrency market recovered some of its losses of the past few days on February 25, when Bitcoin (BTC) briefly rose above the $ 50,000 level and many digital currencies showed double-digit gains.
Data from Cointelegraph and TradingView shows that Bitcoin jumped from its low of $ 45,200 at the end of February 24 and rose 15% to $ 52,000 in the morning.
While a return to the cryptocurrency market is a welcome sight for bullish investors, bitcoin price still faces resistance above $ 50,000 and this level has yet to be confirmed as support.
Economists have also begun to worry about increases in government interest rates, which are usually a sign of economic weakness and can have a serious impact on many markets.
$ 100,000 in bitcoin stimulus
Now that Bitcoin has entered a small corrective phase, analysts are debating whether the digital asset could exceed $ 100,000 by the end of 2021.
According to Giles Coglan, senior currency analyst at HYCM, the answer to this question “depends on who you ask,” as cryptocurrencies are considered “very optimistic” that 2021 “will be the year that Bitcoin will be in the spotlight,” while the traditionalists Still skeptical. About “risky and unexpected market”.
Coughlan sees the momentum behind the recent developments being fueled by the “public uproar” that followed the pro-cryptocurrency tweets from Elon Musk and Mark Cuban, but now it appears that the enthusiasm is dwindling as Bitcoin struggles to hold $ 50,000.
Given the volatile nature of Bitcoin, “it is too early to say if this will be a new standard.”
I wouldn’t be surprised if the price slowly drops to $ 40K over the next few weeks, which appears to be a more realistic support level. Dropping below this level is also likely to depend on Bitcoin’s performance through 2020. ”
The analyst sees the adoption and endorsement of Bitcoin by “large institutional funds and regulators” as the next important factor in the price increase, which will also end retailers ’dominance in the cryptocurrency market and could lead to a“ less volatile ”market like the result.
Advertisements and protocol updates drive Altcoin prices
Several large and medium-sized digital currencies saw their prices on Thursday as recent announcements and new mergers boosted trading volumes.
ADA Cardano is the top 10 coins, currently up 10.4% and trading at $ 1.15, while Fantom (FTM) continues to benefit from the integration of modern Ethereum chains and prices will rise 31.79% to $ 0.7755.
Other notable artists include Enjin Coin (ENJ), which is currently up 34% and trading at $ 0.6221. MATIC Polygons are also up by 27.74% to trade at $ 0.2023 USD.
The cryptocurrency’s total market cap is now $ 1.533 trillion, and Bitcoin’s dominance is 61.3%.