Bitcoin has once again crossed over $ 50,000, possibly marking an end to the recent price decline and a revival of the broader uptrend.
The market-top cryptocurrency is trading close to $ 10,950 at press time – up 3.86% in 24 hours – after falling from record highs above $ 58,000 to $ 43,000 at the end of February, according to CoinDesk 20 data.
“The correction appears to have ended with a step above $ 50,000,” John Ng Pangilinan, chief partner at Singapore-based Signum Capital, told CoinDesk. Saying a foothold above that level is the key to resuming the broader uptrend and a step towards new record highs, he said.
Bitcoin’s recent break above the psychological barrier looks sustainable, as the futures market is much more healthy condition than in mid-February when surplus debt rose. In addition, institutional demand remains strong, as emphasized by recent outflows from cryptocurrency exchange Coinbase Pro.
“This time it costs $ 50,000 with standard funding, no crowded futures markets, spot futures market parity and high Coinbase premiums combined with large outflows and institutional interest,” market analyst Joseph Young tweeted.
The comments were repeated by Matthew Dibb, COO and co-founder of Stack Funds, who said that the overall trend remains bullish, adding that a UTC close to $ 52,100 would pave the way for a development towards new lifetime highs above $ 58,332.
However, a new record high may remain elusive if US bond yields resume their latest rally, pushing stock markets lower, he said.
“From a basic perspective, we are still reached in the macro markets. “Knee jerk reactions in the bond market and volatile stocks may continue to prove” risk off “correlations with Bitcoin,” Dibb told CoinDesk. “We remain extremely bullish but would not be surprised to see further volatility in the short term.”
Bitcoin and equities faced selling pressure last week as US 10-year bond yields rose to twelve-month highs above 1.6% and investors priced the outlook for an early settlement of the Federal Reserve’s monetary stimulus.