Bitcoin’s Race to $ 50,000 Red Hot Thanks to Continued Institutional Backing

Aug 23, 2021 0 comments

image: fool.com.

The cryptocurrency market has been on the rise recently and there is one cryptocurrency, Bitcoin (BTC), leading the way. Having gone through a phase of volatility for most of the last 60 days, the leading cryptocurrency has shown a high level of recovery, even surpassing its 200-day moving average earlier this month, suggesting that a move towards the psychological barrier of $ 50,000 may be among the possibilities.

To put things in context, In the last month alone, BTC has posted gains of more than 55%, helping the total market capitalization of this relatively fledgling space to once again exceed the $ 2 trillion threshold. These surprising figures can be attributed, in large part, to the increase in institutional adoption that has occurred in this sector in recent months.

In this regard, some of the most important institutional adopters of Bitcoin are Microstrategy, led by Michael Saylor, the electric vehicle manufacturer Tesla and investment firms focused on cryptocurrencies Galaxy Digital Holdings and Voyager Digital. Furthermore, even some traditional banking institutions have recently entered the world of cryptocurrencies. Wells Fargo, one of the oldest banks in the United States, is the newest member from a growing list of financial institutions offering their wealthy clients indirect exposure to Bitcoin.

Other prominent financial institutions that also offer a range of crypto-focused financial offerings include JPMorgan, BNY Mellon, Morgan Stanley, Bank of America and Goldman Sachs, among many others.

Finally, according to recent files submitted to the Securities and Exchange Commission (SEC) of the United States, a growing list of wealth managers (such as Clear Perspective Advisors, based in Illinois, and Ancora Advisors, based in Ohio) have been buying considerable sums of shares of the Grayscale’s Bitcoin Investment Trust (GBTC), which indicates a growing demand for the asset among institutional actors.

What to Expect

By giving your opinion on when you see Bitcoin rising to the $ 50,000 mark, Iqbal Gandham, vice president of transactions at security and infrastructure solutions provider, Ledger, told Cointelegraph that When significant milestones are crossed in price, there is always a pause (like the one we are witnessing now) for the market to stabilize:

The longer we keep it here, the more support it will get. As for the factors that will drive this rally, I really think it is more psychological than news-driven. People are expecting a trend, so any slightly positive news could do. that the price moved drastically. It is no longer a question of if, but of when.

Daniele Bernardi, CEO of fintech management company Diaman Group, told Cointelegraph that Your company’s own indicators are extremely positive in terms of short-term BTC growth. Nevertheless, In his personal opinion, the next wave of bull market growth will not be driven exclusively by Bitcoin, but rather by alternative assets such as (ETH), Cardano (ADA) and Binance Coin (BNB).

“My take is that actually, it’s more important to focus on altcoins for a while. We can expect a reduction in Bitcoin’s dominance for a few months,” said.

Finally, according to Talal Tabbaa, President and co-founder of CoinMENA (an FTX-backed cryptocurrency exchange based in the Middle East), Although Bitcoin could trade at $ 50,000 in the next few days, this short-term price movement is pretty irrelevant when looking at the bigger picture of things:

Technical analysis has limitations and shouldn’t be used solely for decision making. In fact, I find it crazy that some people think that they can draw lines on a chart and predict the future. Macro events such as a mining ban by China or the approval of ETFs by the United States will have a much greater impact on short-term movements of the price of Bitcoin than any technical analysis.
Sourced from oicanadian.com.

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